Rashita Puthiya, Lecturer in Accounting and Finance at Middlesex University Dubai, recently conducted a full-day training session for members of the Institute of Chartered Accountants of India (ICAI) Abu Dhabi Chapter. The technical session focused on the new accounting standard on leases. Effective from 1 January 2019, IFRS 17 on leases requires a lessee to recognise lease liabilities and corresponding right of use asset in the financial statements.
This standard will have significant impact on entities like airlines where assets are often financed by way of long term leases. The former standard permitted a lessee to account for the lease payments as expense through Income Statement on the grounds that risk and rewards are not transferred to lessor. The revised standard focuses on the concept of control acquired by lessee to use the asset for an agreed time period. Hence, lessee is required to reflect future lease commitments as a liability on the Balance Sheet along with a corresponding right to use asset.
The technical session additionally covered accounting standards on agriculture and accounting for effect on foreign exchange rates. The session was a part of the IFRS certification programme organised by the Overseas Office of ICAI.
Accounting and Finance programmes at Middlesex University Dubai are recognised and accredited by leading professional accounting bodies including ACCA, ICAEW and CIMA. The Master’s in Investment Management is certified by CFA Institute. You can find out more about these programmes at www.mdx.ac.ae/courses.