IAS 17 classifies leases into two types: an operating lease if the lease does not transfer substantially all the risks and rewards incidental to ownership. IAS 17 prescribes lessee and lessor accounting policies for the two types of leases, as well as disclosures.

IAS 17 outlines the accounting treatment for leases, including recognition, measurement, and disclosure requirements.

IAS 17 International Accounting Standard 17 Leases Objective 1 The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation to leases. Scope 2 This Standard shall be …

The following IAS 17 guide explains the IAS 17 standard with IAS 17 journal entries. Accounting for IAS 17 Finance Lease. Finance Lease For Lessee. In Finance Lease substantially all the risks and rewards of ownership are transferred to Lessee by Lessor.

Under IAS 17, land and building elements must be considered separately, unless the land element is not material. This means that nearly all leases involving land and buildings should be bifurcated into two components, with separate classification considerations and accounting for each component.

IAS 17 Leases The objective of this Standard is to prescribe, for lessees and lessors, the appropriate accounting policies and disclosure to apply in relation to leases. The classification of leases adopted in this Standard is based on the extent to which risks and rewards incidental to ownership of a leased asset lie with the lessor or the lessee.

As noted in the information provided for observers at the IASB meeting in July 2008, the main concerns about the current IAS 17 were: the dividing line between finance and operating leases is hard to define in a principled way