BC229 Rather than creating specific lease disclosure requirements, the IASB considered an alternative approach whereby a lessee would be required to disclose information about its right-of-use assets applying the disclosure requirements for property, plant and equipment in IAS 16, and information about its lease liabilities applying the disclosure requirements for financial liabilities in IFRS 7. Those supporting this approach thought that it would be consistent with the lessee accounting model in IFRS 16.
BC230 Although noting that there are significant similarities between right-of-use assets and other assets and between lease liabilities and other financial liabilities, the IASB did not adopt this approach because:
(a) it would not provide specific information to users of financial statements about some features of a lessee’s lease portfolio that are common in lease arrangements (such as variable payments, options to extend or terminate leases and residual value
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