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.
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