All articles by Peter Hogarth

Lease accounting: Choosing the right approach

Peter Hogarth looks over recent developments in the IASB and FASB’s lease accounting project Some of the tentative decisions made by the boards at their October meeting could have a significant impact on leasing companies.The decision to potentially exclude hire purchase and other underlying purchase-type agreements from the scope of the project will affect manufacturer-dealer lessors During talks around the discussion paper (DP) in spring, it was mooted that some transactions currently accounted for as leases are really sales with deferred payment proceeds which is hard to disagree with in principle, although of course in real life they are often harder to categorise