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Version date: 26 February 2020 - onwards
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The lessee accounting model (paras. BC41-BC56)

BC41 Having concluded that the lessee’s right to use the underlying asset meets the definition of an asset and the lessee’s obligation to make lease payments meets the definition of a liability (as described in paragraphs BC22-BC40), the IASB then considered whether requiring a lessee to recognise that asset and liability for all leases would improve financial reporting to the extent that the benefits from the improvements would outweigh the costs associated with such a change.

BC42 The IASB considered comments from respondents to the Discussion Paper and the 2010 and 2013 Exposure Drafts, and from participants at consultation meetings (including meetings with users of financial statements) as described in paragraphs BC9 and BC13. In the light of these comments, the IASB concluded that there would be significant benefits from requiring a lessee to recognise right-of-use assets and lease liabilities for all leases (except shortterm leases and leases of low-value assets as described

Comparing proposed amendment...