Posted by & filed under Financial Accounting, Financial Reporting and Analysis, IFRS, Intermediate Accounting.

For years, there has been a debate about whether operating leases should be capitalized. In a recent IASB project update report, it is estimated that the long-term liabilities on the balance sheet are underestimated by as much as 46% due to non-recognition of operating leases. Many wonder whether the IASB will scrap the dual lease reporting approach to reduce complexity and compliance.

1. What were the most important tentative decisions reached by the IASB during its recent deliberations about leases?
2. When does the IASB expect to issue its revised leasing standard?
3. What is the difference between a Type A lease and a Type B lease?


BDO Australia staff- (2014). Lease accounting – Is it changing or not? Accounting News, Sep. 2014 (Retrievable online at,-september-2014/lease-accounting-is-it-changing-or-not)