IFO4
Loading...Leases that, by virtue of their economic substance, transfer substantially all the risks and rewards of ownership to the lessee, requiring the asset and a corresponding liability to be recognised on the balance sheet. Under modern lease accounting standards, most leases longer than one year are treated as on-balance-sheet right-of-use assets with associated lease liabilities. The federation requires lease liabilities to be reported by remaining maturity, with the discount rate basis disclosed and lease modifications reconciled in each period under MEV-Annex:4.1.
A standard term of post-war corporate accounting; the modern construction was reshaped by the IFRS 16 and ASC 842 standards of the 2010s.
Federation members publish a lease maturity ladder quarterly and reconcile right-of-use asset balances to lease liabilities. Lease modifications affecting payments by more than ten percent are reportable under MEV-Annex:4.1.
@misc{ifo4_glossary_capital_leases,
title = {{Capital Leases}},
author = {{IFO4 Federation Editorial Board}},
howpublished = {{IFO4 Federation Glossary, slug \texttt{capital-leases}}},
year = {2026},
url = {https://ifo4.org/glossary/capital-leases},
note = {Category: Capital; key: CapitalLeases}
}Federation members and accredited practitioners may challenge any entry under TGS-002:1.7. Filed challenges are routed to the editorial board, triaged into the revision register, and resolved in writing on the public docket. The slug remains stable through any revision.