We comment on ED/2010/9 'Leases'

  • Deloitte Comment Letter Image

15 Dec, 2010

Deloitte has submitted a comment letter on Exposure Draft ED/2010/9 'Leases'.

The proposal would result in a consistent approach to lease accounting for both lessees and lessors using a 'right-of-use' approach.

We agree with the proposed right-of-use model when it is applied to very simple lease arrangements that include a fixed term with fixed payments as we believe this will increase transparency of the economic effects of leasing arrangements to users of the financial statements. However, we have significant concerns over the application of the right-of-use model when the arrangement includes other terms such as options and contingencies.

Click to Download our Comment Letter (PDF 146k).

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