More Delays On Lease Accounting Changes

Cushman & Wakefield » Knowledge Center » Business Briefings » More Delays On Lease Accounting Changes

Download Report

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 forward.

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.

Download our Briefing to understand how this affects your business