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| International Accounting Standard 17, dealing with leases.
| | Regulation for the welfare of the financial system as a whole rather than individual financial institutions. |
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| ''IAS 17 has been replaced by IFRS 16.''
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| ''IFRS 16 is mandatory - for companies reporting under international financial reporting standards - from 1 January 2019.''
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| IAS 17 required finance lease liabilities to be accounted for 'on balance sheet'.
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| It also required the appropriate allocation of the total lease instalments between finance charges and reduction of the outstanding lease liability.
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| Under IAS 17 the total finance charge was spread in such a way as to produce a constant periodic rate of interest on the remaining balance of the liability.
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| However, IAS 17 also allowed for some form of approximation to be used to simplify the calculation.
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| Fully accurate calculation bases for spreading the total finance charge included the Actuarial method.
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| The Sum of the digits method is simpler to apply, and will normally produce a close approximation.
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| | One insight from the Global Financial Crisis (GFC) was that bank viability regulation at the macro/systemic level had been dangerously neglected pre-crisis. |
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| == See also == | | == See also == |
| * [[Actuarial method]] | | * [[Microprudential]] |
| * [[Finance charge]] | | * [[GFC]] |
| * [[Finance lease]]
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| * [[FRS 102]]
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| * [[IFRIC 4]]
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| * [[IFRS 16]]
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| * [[International Financial Reporting Standards]]
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| * [[Off balance sheet finance]]
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| * [[Operating lease]]
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| * [[Sum of the digits]]
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| [[Category:Accounting,_tax_and_regulation]]
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| [[Category:Compliance_and_audit]]
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Revision as of 12:31, 1 September 2015
Regulation for the welfare of the financial system as a whole rather than individual financial institutions.
One insight from the Global Financial Crisis (GFC) was that bank viability regulation at the macro/systemic level had been dangerously neglected pre-crisis.
See also
