International Accounting Standard 17 "problems in implementation and suggested solution in solving it / Mohd Zulkifli Mokhtar

The expansion in the volume of leasing transactions over the last few years and the development of a new class of lease for larger assets over longer periods, has made leasing a major source of industrial finance in Malaysia. These developments have not been matched by changes in accounting methods necessary to give an adequate treatment to a new form of leasing transactions which has developed. Thus in order to cope with these developments, International Accounting Standard 17 - 'Accounting for Leases' was issued in September 1982 by the Malaysian Association of Certified Public Accountants [MACPA]. But due to comments and controversies occurred from the introduction of IAS 17, the MACPA in a memorandum dated Deqarptitrr 16 1985, reissued IAS 17 as a Malaysian Exposure Draft [ED] and extended the exposure period to another six months to solicit comments relating to the provision in the standard.