The long overdue lease accounting Revised Exposure Draft suffered another setback, with the two
governing bodies favouring alternative methods for the treatment of rent (“lease charge”) going
While it is tentatively accepted that leases will appear on the balance sheet, the mechanism by
which the Right-To-Use (RTU) asset and Obligation-To-Pay (OTP) liability are reduced is in
question. There are three approaches being considered on how to depreciate the asset, all with
contrasting effects to the P&L.
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