PRACTICAL CONSIDERATIONS TO ACCOUNT FOR THE LEASE IN ACCORDANCE WITH IFRS 16
Abstract
Purpose of research – for organizations that do not have the opportunity to acquire property necessary for conducting business, one of the ways to get out of the situation is to rent the property. According to the new international financial reporting standard for leases (IFRS 16), from 2019, all companies that prepare their financial statements under IFRS must reflect in their financial statements lease agreements, recognizing as new assets and liabilities.
The purpose of the scientific article is to consider the characteristics of organizations of accounting and evaluation of the object of obligations and assets associated with the lease.
Methodology – in this scientific article, the authors conducted a comparative analysis of the accounting for leases in accordance with IFRS 16 «Leases» and IFRS (IAS) 17 «Leases». The features of accounting of the rental object from the tenant and from the lessor are investigated. A new methodology for estimating liabilities and assets associated with leases has been identified.
Originality – the peculiarity of the scientific work lies in the descriptions of the provisions of the new standard IFRS 16 «Leases» and its impact on the key financial indicators of the company.
Summary – the changes in IFRS 16 will affect, to a greater extent, those companies that have a significant share of leases in their financial portfolio.
IFRS 16 requires extended disclosures in financial statements by both the lessee and the lessor. The purpose of this disclosure is to provide users of financial statements with information to assess the impact of leases on the financial position, financial results and cash flows of the company. In addition, the tenant will disclose more information about his rental activity, and the lessor will disclose the operating lease and the residual value risks.
About the Authors
N. S. Nurkasheva
Narxoz University
Kazakhstan
Kazakhstan
Candidate of Economic Sciences, Associate Professor of the Accounting, Audit and Evaluation Department
Almaty
Z. P. Aidynov
KazATU named after S.Seifulli
Kazakhstan
Kazakhstan
Candidate of Economic Sciences, Associate Professor of Management Department
Astana
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Review
For citations:
Nurkasheva N.S., Aidynov Z.P. PRACTICAL CONSIDERATIONS TO ACCOUNT FOR THE LEASE IN ACCORDANCE WITH IFRS 16. Central Asian Economic Review. 2018;(5-6):52-61. (In Kazakh)
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