FRC expects companies to expand discussion of new leasing standard in annual reports and accounts

6 Nov 2019 09:46 AM

Companies applying the new standard on lease accounting need to provide more information on its effects, according to a new report by the Financial Reporting Council (FRC).

The FRC has reviewed the interim reports of 20 companies applying International Financial Reporting Standard 16 (IFRS) ‘Leases’ for the first time.

The FRC found a number of examples of better practices, which tended to be those disclosures that were tailored to the company’s circumstances and provided more than the minimum requirements.

As required by IFRS, companies are expected to provide more information in their annual reports and accounts to help stakeholders better understand the effect of the new standard. This should include: 

A link to the review can be found here