Inhaltsangabe oder Einleitung
Accounting for leases is quite significant in the business reporting framework for its role in asset acquisition and valuation and for bank use in securing credit. Leases under AIS 17 are classified as a finance lease or an operating lease. A finance lease is a lease that transfers in totality all the risks and rewards inherent in ownership of the asset.
On the other hand, an operating lease is any lease other than the finance lease. The accounting treatment depends on the nature of the lease. The treatment is to create a lease asset and liability at the beginning of the lease. The new lease recognition will alter the financial reporting approach as leases will have to be factored in the balance sheet. Besides, it will require systems developers to design new software to help manage leases as part of assets and liabilities.
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- David Ikanyi (Autor:in), 2018, Accounting Standard and Regulation Report, München, GRIN Verlag, https://www.grin.com/document/387274
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