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On 1 January 2019, a new standard for lease accounting came

cheap hermes belt For organisations with multiple or extensive lease agreements, suddenly showing a large amount of debt on their books could have practical repercussions.On 1 January 2019, a new standard for lease accounting came into effect, affecting any organisations that lease buildings, offices, retail spaces, cars, equipment and even intellectual property, from a lessor.The new standard, AASB 16 Leases, is being implemented globally by the International Accounting Standards Board (IASB). It requires calculating the entire cost of a lease agreement (from the date the lease starts) and recording it as a liability and corresponding asset.This is vastly different from the existing accounting method of simply recording monthly rent as an expense.For those organisations with multiple or extensive lease agreements, suddenly showing a large amount of debt on their books could have practical repercussions. The only exceptions to the new requirements are small leases of less than $5,000, and short term leases of less than one year.Ralph Martin, National Technical Director at RSM Australia, explains:”Essentially, once the new change comes into place, the word ‘rent’ will not exist in accounting. cheap hermes belt

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