The International Accounting Standards Board (IASB) met and fixed an effective date for the lease accounting standard of 1 January 2019.
The IASB met between 20-22 October in London and worked through issues surrounding the launch of the lease accounting standard, decisions on which are still tentative, according to accountancy firm EY.
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According to the EY summary, the Board decided that a lessee would treat a lease modification as a separate new lease, only if the modification increases the scope of the lease by adding the right to use one or more underlying assets, and the consideration increases in line with the stand-alone price for that increase in scope.
It was decided that a modification that solely extends the lease term does not grant the lessee an additional right of use, and therefore would not result in a separate new lease. In that case, a lessee would recognise any increase in lease assets and lease liabilities at the date that the modified terms and conditions are agreed.
The US Financial Accounting Standards Board made a similar decision at its October 2015 meeting.
According to accounting firm Deloitte, the IASB will discussed pollutant pricing mechanism (education session); impairment transition group update; financial instruments with characteristics of equity; insurance and IFRS 9; IFRS implementation issues; goodwill and impairment; and the definition of a business.
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By GlobalDataAn overall standard is expected by the end of 2015.
