WG 67 Leases

Chairman: Dato' Soo Chan Fai; Project Manager: Mr Thong Foo Vung

WG 67 was set up to review IASB's Discussion Paper on Leases: Preliminary Views. The discussion paper is a response to concerns raised by investors and other users of financial statements regarding the treatment of lease contracts under International Financial Reporting Standards (IFRSs) and US generally accepted accounting principles (GAAP). In the discussion paper the IASB and the FASB discuss a possible new approach to lease accounting. The boards propose that lease accounting should be based on the principle that all leases give rise to liabilities for future rental payments and assets (the right to use the leased asset) that should be recognised in an entity's statement of financial position. This approach is aimed at ensuring that leases are accounted for consistently across sectors and industries.