FRS 102: Leasing transactions
One of the most topical debates at the moment, certainly among the International Accounting Standards Board, is the issue of leasing explains Steve Collings.
Leases have always posed a problem for the profession because of their subjective nature and the ability to manipulate leasing transactions to achieve a desired outcome (commonly referred to in the profession as ‘off balance sheet finance’). This article takes a look at leasing in the context of FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and also takes a brief look at the IASB’s proposals that may affect companies in the future.
Leasing is dealt with in FRS 102 in Section 20 Leases. At the outset this particular section confirms that it does not deal with...
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- Finance and operating leases
- Determining the amounts in a finance lease
- Subsequent measurement: Finance leases
- Operating leases
- Lessor accounting: Finance leases
- Manufacturer or dealer lessors
- Lessor accounting: Operating leases
- Disclosures: Finance leases
- Disclosures: Operating leases
- Leasing: The future?