Mark Middleditch (Allen & Overy) reviews recent developments affecting the City.
Leasing
On 9 August HMRC published a discussion document on tax responses to lease accounting changes (see www.bit.ly/2aS5hDT). The driver for this in an area of tax law that HMRC might have preferred to leave well alone is the introduction of IFRS 16 a new accounting standard for leases. This takes effect for listed companies and those accounting under FRS 101 from 1 January 2019. The existing accounting treatment of leases will continue to apply for companies accounting under UK GAAP (at least until 2022).
Under the new accounting standard for lessees the distinction between finance and operating leases will no longer apply. Instead lessees will recognise the finance charge element of the rents and depreciation of...
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Mark Middleditch (Allen & Overy) reviews recent developments affecting the City.
Leasing
On 9 August HMRC published a discussion document on tax responses to lease accounting changes (see www.bit.ly/2aS5hDT). The driver for this in an area of tax law that HMRC might have preferred to leave well alone is the introduction of IFRS 16 a new accounting standard for leases. This takes effect for listed companies and those accounting under FRS 101 from 1 January 2019. The existing accounting treatment of leases will continue to apply for companies accounting under UK GAAP (at least until 2022).
Under the new accounting standard for lessees the distinction between finance and operating leases will no longer apply. Instead lessees will recognise the finance charge element of the rents and depreciation of...
If you or your firm subscribes to Taxjournal.com, please click the login box below:
If you do not subscribe but are a registered user, please enter your details in the following boxes:
