Webinar: Accounting for Leases
Date And Time
The way Tier 1 and 2 Public Benefit Entities (PBEs) account for leases is under review. Not-for-profit and public sector entities have lease arrangements, with many of these at below-market terms (concessionary leases).
The XRB sets accounting standards for New Zealand PBEs. These are based primarily on International Public Sector Accounting Standards (IPSAS) issued by the International Public Sector Accounting Standards Board (IPSASB). You will be applying these standards.
The IPSASB has issued for comment Exposure Draft 64 Leases (ED 64). This contains proposals for how leases are accounted for and disclosed, including concessionary leases.
The ED proposes to remove the current distinction between an operating lease and a finance lease. Instead, the lessee and the lessor would apply a new right-of-use model when accounting for leases. This would result in future lease commitments being recognised on the balance sheet.
The potential impact of the proposed changes are considered to be widespread and may impact both an entity's financial position and financial performance.
This webinar will outline the proposals in some detail and will seek your comments and concerns.