International Accounting

Accounting for lease during the standardization of accounting and financial reporting

Vol. 21, Iss. 4, APRIL 2018

Received: 1 March 2018

Received in revised form: 14 March 2018

Accepted: 30 March 2018

Available online: 14 April 2018


JEL Classification: М41

Pages: 452–465

Alekseeva G.I. Financial University under Government of Russian Federation, Moscow, Russian Federation

ORCID id: not available

Importance The article deals with theoretical and methodological aspects of lease in the Russian and international accounting practices, considering the reforms of the Russian accounting practice.
Objectives I examine IFRS principles on the way lease operations shall be recognized in accounting records, and the draft Federal Accounting Standard Accounting for Lease. I identify their points of convergence and divergence. The article also unveils how lease accounting practices are to be amended in Russia. I formulate my recommendations for harmonizing the Russian Accounting Standards and IFRS on lease.
Methods The article involves such methods as comparison, analysis, generalization and systematization.
Results Having critically analyzed various scientific viewpoints on the way entities should recognize lease, effective IFRS and draft FAS, I systematized common features and differences of lease accounting approaches. Reviewing IFRS 16 Lease and draft FAS Accounting for Lease, I find out that the latter ensures the convergence of the Russian and international principles. I suggest that draft Federal Accounting Standards should provide for measurement of right-of-use assets and fixed assets at historical cost upon their initial recognition, qualify such assets as income-bearing investment in tangibles, outline the Russian Federal Accounting Standard Investment Property and stipulate how the lessor shall recognize expenses under operating lease.
Conclusions and Relevance I conclude that the draft FAS Accounting for Lease, if enacted, will ensure the convergence of the Russian accounting standards and IFRS on lease, thus reducing businesses' spending on the IFRS-compliant transformation of financial statements.

Keywords: lease, financial accounting, standards, IFRS, Russian accounting


  1. Alekseeva G.I. Finansovaya arenda: problemy bukhgalterskogo ucheta v usloviyakh reformirovaniya rossiiskogo ucheta i prava. V kn.: Reformirovanie ucheta i prava v sovremennoi Rossii: monografiya [Financial lease: Accounting issues during the reform of the Russian accounting and financial reporting practices. In: Reforming the accounting practices and law in modern Russia: a monograph]. Moscow, RUSCIENCE Publ., 2016, pp. 34–41.
  2. Alekseeva G.I. [Accounting of the lease contract according to the IFRS: The current status and the prospects for the Russian organizations]. Uchet. Analiz. Audit = Accounting. Analysis. Auditing, 2017, no. 2, pp. 78–86. (In Russ.)
  3. Aldarova T.M. [Lease accounting in tenant's books: Analysis of the provisions of IAS 17 Leases and IFRS 16 Leases]. Auditorskie vedomosti = Audit Statements, 2016, no. 6, pp. 40–56. (In Russ.)
  4. Plotnikova O.V., Bezhan M.V., Moskaleva V.A. [Accounting for financial instruments in lease transactions]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2017, no. 10, pp. 563–578. (In Russ.) URL:
  5. Varnakova G.F. [Accounting for leasing transactions lessor]. ACTUALSCIENCE, 2016, vol. 2, no. 4, pp. 71–72. (In Russ.)
  6. Vakhrushina M.A. [Accounting for leasing transactions. The Russian approach of the lessee, accounting and tax aspects]. Lizing = Leasing, 2010, no. 7, pp. 5–10. (In Russ.)
  7. Demina I.D. [Accounting of operating and financial leases in the agricultural organizations]. Bukhuchet v sel'skom khozyaistve = The Journal of Accounting in Agriculture, 2014, no. 7, pp. 49–56. (In Russ.)
  8. Dun I.R. [Residual value of equipment: Accounting aspects for the lessor]. Lizing = Leasing, 2016, no. 5, pp. 41–46. (In Russ.)
  9. Dun I.R. [Accounting of leasing property at the lessee]. Lizing = Leasing, 2015, no. 8, pp. 50–57. (In Russ.)
  10. Kovalev Vit.V. [About the essence of leasing operations]. Vestnik Sankt-Peterburgskogo universiteta = St. Petersburg University Journal of Economic Studies, 2006, iss. 3, pp. 41–50. URL: (In Russ.)
  11. Kovalev Vit.V. [Leasing in Russia: Theory and myths]. Vestnik Sankt-Peterburgskogo universiteta = St. Petersburg University Journal of Economic Studies, 2011, iss. 4, pp. 88–98. URL: (In Russ.)
  12. Lukinova L.G. [New international rules for lease of assets]. Promyshlennost': bukhgalterskii uchet i nalogooblozhenie = Industrial Sector: Financial Accounting and Taxation, 2016, no. 9, pp. 47–53. (In Russ.)
  13. Lukinova L.G. [The entity as the lessor]. Promyshlennost': bukhgalterskii uchet i nalogooblozhenie = Industrial Sector: Financial Accounting and Taxation, 2016, no. 11, pp. 56–64. (In Russ.)
  14. Malinovskaya N.V. Informatsionnoe obespechenie lizingovoi deyatel’nosti v usloviyakh reformirovaniya otrasli. V kn.: Fenomen rynochnogo khozyaistva: vektory i osobennosti evolyutsii [Information framework for leasing during the industry reforms. In: Phenomenon of the market economy: Directions and distinctions of its evolution]. London, LSP, 2017, pp. 537–543.
  15. Malykh N.I. [Leasing as a form of financing investment projects and its accounting according to International Financial Reporting Standards]. Audit i finansovyi analiz = Audit and Financial Analysis, 2015, no. 2, pp. 240–245. (In Russ.)
  16. Pazderova V.Yu., Tkhagapso R.A., Khot F.T. [Finance lease (leasing): current state and perspectives of the Russian accounting practices modelling]. Vestnik Adygeiskogo gosudarstvennogo universiteta = Bulletin of the Adyghe State University. Series Economics, 2016, no. 1, pp. 82–87. URL: (In Russ.)
  17. Prodanova N.A., Malykh N.I. [Financial lease accounting practices under the Russian GAAP and IFRS]. Chelovek. Obshchestvo. Inklyuziya = Human. Society. Inclusion, 2016, no. 3-2, pp. 71–78. (In Russ.)
  18. Plotnikov V.S., Plotnikova O.V., Mel'nikov V.I. [The theoretical aspects of IFRS 16]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2017, vol. 20, iss. 1, pp. 2–15. (In Russ.) URL:
  19. Fradina T.I., Pavlova T.A. [Improved methods of lease transaction accounting that meet the requirements of International Financial Reporting Standards]. Ekonomika i upravlenie = Economics and Management, 2015, no. 4, pp. 60–64. (In Russ.)
  20. Shogentsukova Z.Kh., Gedgafova I.Yu. [Systematizing the accounting and financial reporting standardization: The scope and level of implementation]. Mezhdunarodnyi bukhgalterskii uchet = International Accounting, 2015, no. 2, pp. 58–68. URL: (In Russ.)
  21. Mizikovskii E.A., Druzhilovskaya T.Yu. Mezhdunarodnye standarty finansovoi otchetnosti i bukhgalterskii uchet v Rossii [International Financial Reporting Standards and accounting in Russia]. Moscow, Bukhgalterskii uchet Publ., 2006, 328 p.

View all articles of issue


ISSN 2311-9381 (Online)
ISSN 2073-5081 (Print)

Journal current issue

Vol. 21, Iss. 4
April 2018