New Approaches to Lease Contracts Reporting by International Reporting Standards Authors
New Approaches to Lease Contracts Reporting by International Reporting Standards Authors

Summary/Abstract: This paper aims to give partial results of the analysis of existing and proposed new approaches to reporting of leases, on the side of the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB), whose concepts of reporting leases have been offered for public discussion since the end of the year 2009. The paper presents author’s views of the advantages and weaknesses of some of the proposed methods of reporting of lease contracts. These findings result from the performed comparisons of recording simplified specific lease contracts on operating lease from a business practice, reported according to the current IFRS methodology and the concept of the right of use, and from comparison of views of specialists, in particular those published on the IASB and FASB websites. These views were further completed by the author with partial results of the investigation of suitability of future application of these principles to SMEs (Small and Medium-sized Entities). The survey was conducted among selected Czech companies whose leaders knew the problems of reporting operating and finance leases under IAS/IFRS and were willing to study the concepts presented by the IASB and the FASB and other materials relating to leases.

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