IFRS for SMEs / Section 20: Leases
Section 20: Leases
Section 20 distinguishes finance leases, recognised as an asset and a liability, from operating leases, expensed on a straight-line basis. The third edition keeps this model.
Disclosures to look for
- 20.13 Finance leases: carrying amounts and future minimum lease payments by band.
- 20.16 Operating leases: future minimum lease payments within one year, from one to five years and after five years.
How Sight applies it
Rent payments are suggested as operating lease expense; the commitments note shows the lease bands the accountant captures.
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