Accounting experts are beginning to discuss whether companies might change their leasing strategy when new accounting standards take effect requiring leases to be reflected on corporate balance sheets.
An association of accountants in Australia is pondering whether companies will look to structure lease arrangements to take advantage of exceptions from balance sheet recognition under International Financial Reporting Standards. Short-term leases and low-value leases are both excluded from the scope of the new lease accounting standard under IFRS, wrote Alex Malley, chief executive of CPA Australia.
