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LEASE AGREEMENTS FINANCIAL REPORTING ISSUES ACCORDING TO THE INTERNATIONAL STANDARDS
Abstract
On January 13th 2016, the Board for International Accounting Standards published the new International Standard 16 of Financial Reporting, named as “Lease”, which will substitute the International Accounting Standard 17 of financial reporting “Lease”.
ISFR 16 ensures reflection of practically all lease agreements in the financial reporting, which, in is part, meets the requirements of investors regarding reliability and transparency of the information related to a financial state of an enterprise.
The Article considers the changes caused by ISFR 16, which relate to recognition of the lease agreements as the asset, their accounting and, impact on the financial reporting. Relevant conclusions are provided regarding the above mentioned issues.
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References
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