At the beginning of 2016, IASB issues a new accounting standard for lease transactions ( IFRS...

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Accounting

At the beginning of 2016, IASB issues a new accounting standardfor lease transactions ( IFRS 16), which will be rffective from 01January 2019.
1. Explain the accounting treatment for lease transactions onthe lessee's financial statements under both the current accountingstandard (IAS 17) and new standare (IFRS 16) on the lessee'sfinancial statement.

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Accounting treatment of lease in lessees financial statement in new IFRS 16 are as follows At a time of lease commitment a lessee recognize a right of use asset and a lease liability in his financial statement Right of use of assetsTotal amount of lease liabilities net Initial direct costs incurred by the lessee subject to See Answer

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At the beginning of 2016, IASB issues a new accounting standardfor lease transactions ( IFRS 16), which will be rffective from 01January 2019.1. Explain the accounting treatment for lease transactions onthe lessee's financial statements under both the current accountingstandard (IAS 17) and new standare (IFRS 16) on the lessee'sfinancial statement.