Leasing is an important financial solution used by many organisations. It enables companies to use property, plant, and equipment without needing to incur large initial cash outflows. Under existing rules, lessees generally account for lease transactions either as off-balance sheet operating or as on balance sheet finance leases. The new standard requires lessees to recognise nearly all leases on the balance sheet which will reflect their right to use an asset for a period of time and the associated liability to pay rentals. The lessor’s accounting model largely remains unchanged.
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PwC's Derek Carmichael, Jay Tahtah and Jessica Taurae discuss hot topics for the new standard's implementation, including discount rates, lease terms and transition.
PwC's Derek Carmichael, Jay Tahtah and Jessica Taurae discuss hot topics for the new standard's implementation, including discount rates, lease terms and transition.
