IAS 17 - Leases
Financial Dictionary — IFRS & IAS Standards
Definition
IAS 17 distinguished between finance leases and operating leases for lessees and lessors. It has been replaced for most purposes by IFRS 16 but remains relevant in historical reporting.
Detailed Explanation
IAS 17 classified leases as finance or operating for lessees and lessors. It has largely been replaced by IFRS 16, but remains relevant for historical comparison and older periods.
Common Uses
- Used when applying IFRS/IAS requirements for recognition, measurement, presentation, or disclosure.
- Used to justify accounting treatments in working papers and financial statement notes.
- Used to justify accounting treatments in working papers and financial statement notes.
Practical Example
- Example: When preparing year-end reporting, management applies **IAS 17 - Leases** to determine the correct IFRS treatment and disclosures.
Why This Term Matters
- Why it matters: Ensures compliance with IFRS, improves comparability across periods and entities, and reduces financial reporting risk.