Ias 17

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for Bank Accounting Professionals
IAS 17 Leasing


These workbooks are an update of those originally written by the project team of the European Union funded project Accounting Reform II in the Russian Federation and revised by the project team of the European Union funded project, Implementation of Accounting Reform in the Russian Federation. This version has been produced by the European Union funded project Transition to IFRS in the Banking Sector.

The workbooks cover various concepts of IFRS based accounting. They are intended to be practical self-instruction aids that professional accountants can use to upgrade their knowledge, understanding and skills.

The purpose of this version is to help bank accountants in the use of IFRS.

Each workbook is a self-standing short course designed for approximately of three hours of study.

The members of the project team were contributed by PwC Moscow, FBK Moscow, and European Savings Bank Group Brussels. Although the workbooks are part of a series, each one is independent of the others.

A basic knowledge of accounting is assumed but if any additional knowledge is required this is mentioned at the beginning of the section.

Each workbook is a combination of Information, Examples, Self-Test Questions and Answers.

The volumes within each series are described in detail and available for download from the project web site.

The copyright of the material contained in each workbook belongs to the European Union and according to its policy may be used free of charge for any non-commercial purpose.

The project team would like to express thanks to those who have contributed their time and thoughts to the content of the workbooks. In particular:

The European Union Delegation, Moscow

The Bank of Russia, Moscow

Note: Material from the following PricewaterhouseCoopers publications has been used in this workbook:

-Applying IFRS
-IFRS News
-Accounting Solutions


|e-mail |website | |anna.voevoda@ru.pwc.com |www.banks2ifrs.ru | |Tel. |Fax. | |+ 7 495 772-7091 |+ 7 495 772-7094 |

Moscow, Russia, May 2008 (Updated)



IAS 17 – Impact for Banks4



Classification of Leases9

Land and Buildings12

Leases in the Financial Statements of Lessees16

Subsequent Measurement16

Operating Leases18

Leases in the Financial Statements of Lessors19

Subsequent Measurement19

Subsequent Measurement - Manufacturer or dealer lessors20

Lessors - Disclosure21

Operating Leases21

Finance Leasing – Accounting Steps24

Sale and Leaseback Transactions24
Sale and Leaseback with options – collaterised borrowings26

Annex – IFRIC 4, Determining whether an Arrangement contains a Lease30

IFRIC 4 - frequently asked questions31

Outsourcing contracts: an accidental business combination?33

Multiple choice questions35

Answers to multiple choice questions38



The aim of this workbook is to assist the individual in understanding the IFRS accounting treatment and disclosures of Leases, as detailed in IAS 17.

Leases involve the owner of an asset renting it to others for payment. Short-term rental agreements are mostly accounted for as...
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