Lease accounting changes 'little known'
The business world is still in the dark over potential changes to lease accounting standards, warns Grant Thornton
The business world is still in the dark over potential changes to lease accounting standards, warns Grant Thornton
BUSINESSES around the world exhibit low awareness of impending lease accounting changes and even lower support, a new survey has found.
More than half (54%) are not aware of the impending change that will drag all but short-term leases onto the balance sheet, according to a Grant Thornton survey of 2,800 businesses globally.
Of those that do anticipate the change, 46% were in favour and 15% believed it would increase transparency, while 33% thought it would raise costs and complexity.
Tarun Mistry, head of leasing and consumer finance, welcomed the review of lease accounting, but urged global standard setter the IASB to “be patient and get things right”.
“We desire a new standard that is practical for business – avoiding undue complexity and excessive estimation uncertainty. Both lessees and lessors need transparent, comprehensible information both on leasing obligations and also on the related revenue and costs,” he continued.
Transport sector members will be among those most affected by the revision, yet 53% were unaware of the potential changes.
The IASB and US standard setter the FASB plan to re-expose their latest proposals early next year.
More about:
The numbers you crunch tell a story. Your expertis...
13yEmbracing user-friendly AP systems can turn the tide, streamlining workflows, enhancing compliance, and opening doors to early payment discounts. Read...
View articleOrganisations can enhance their financial operations' efficiency, accuracy, and responsiveness by adopting platforms that offer them self-service cust...
View articleIn a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...
View resourceDiscover how AP dashboards can transform your business by enhancing efficiency and accuracy in tracking key metrics, as revealed by the latest insight...
View article75% of FTSE 350 audits assessed as good or requiring limited improvements, failing to meet the FRC's 90% target Read More...
View articleThe incoming IFRS 17 insurance accounting standard is an “opportunity” for accountants to highlight their value to their companies, according to Moody...
View articleTrimble Real Estate & Workplace Solutions report on what has been learned so far on the road to FASB/IASB lease accounting compliance Read More...
View articleCraig Gillespie, business area director, Trimble Real Estate & Workplace Solutions, helps you navigate the latest changes Read More...
View articleCraig Gillespie, Business Area Director for Real Estate at Trimble details the implications of the new rules Read More...
View articleThe recent £4m fine issued to Grant Thornton is a wake-up call to aspiring independent non-executive board members, who must be demonstrably independe...
View articleThe International Accounting Standards Board announces new regulations that create an international Standard for insurance contracts Read More...
View articleThe International Accounting Standards Board (IASB) have announced that Françoise Flores will join 1 January 2017 Read More...
View article