FRC Outlines Leasing Standard Best Practice
A new report from the UK’s Financial Reporting Council recommends that companies applying the new standard on lease accounting provide more information on its effects.
IFRS 16 Leases, which became mandatory on 1 January 2019, requires companies to bring most leases on balance sheet in order to give a more faithful representation of assets and liabilities.
The FRC report looks at a 20 interim reports of companies applying IFRS 16 Leases for the first time to identify examples of best practice.
The report found that tailoring disclosures to the company’s requirements and providing more than the minimum amount of information would help stakeholders understand the effects of the new standard.
The report outlines information companies should include to ensure their disclosures are clearly understood.
Read more here.