IFRS industry insights: The leases project — An update for the shipping industry (Issue 2)
During April 2011, the IASB and FASB (the 'Boards') continued their discussions on the leases project and made a number of tentative decisions which differ from the proposals in the exposure draft (ED) that was issued last year.
Specifically, the Boards reached tentative decisions on the definition of a lease, separating lease and non-lease components and the pattern of expense recognition. Also, the Boards reversed its previous decision on variable lease payments. These are some of the topics that shipping industry respondents expressed concern over in their comment letters on the ED.
In the second part of our IFRS Industry Insights series for the shipping industry, we discuss these topics and the affect the tentative decisions may have on the shipping industry.
