Claes Janzon, PwC Nya regler för redovisning av pensioner och leasingavtal får betydande effekt på företagens nyckeltal IASB publicerar under första halvåret helt nya regler för bland annat pensioner och leasing som kommer att påverka de flesta företagens finansiella rapportering på ett väsentligt sätt. Leasingreglerna är hett omdebatterade och kritiserade och IASB har valt att backa på en del av de kritiserade förslagen, medan man föreslår helt nya ansatser på vissa områden. Många ändringar föreslås i förhållande till det utkast som publicerades så sent som i augusti 2010, men kvar står det grundläggande kravet på att alla leasingavtal ska redovisas i balansräkningen i form av tillgångar (avseende rätten att utnyttja objektet under leasingperioden) och en leasingskuld (avseende förpliktelsen att betala leasingavgifter). När det gäller pensionsredovisning så kommer de nya reglerna att innebära stora förändringar för de flesta svenska företag då korridormetoden är vanligt förekommande i Sverige. Denna metod tas bort och istället uppställs ett krav på att omedelbart redovisa värdeförändringar på pensionsskuld och pensionsstiftelsers förmögenhet i övrigt totalresultat och balansräkning. Möjligheten att redovisa avkastning från förvaltningstillgångar begränsas också. De nya pensionsredovisningsreglerna kommer att träda i kraft från och med 1 januari 2013. Vidare diskuteras de nya förslagen kring redovisning av särskild löneskatt och avkastningsskatt som presenterats av Rådet för finansiell rapportering, och som föreslås träda ikraft 1 januari 2012. www.financialreporting.se

1. www.pwc.com
The future of lease
accounting

2. Lease accounting overhaul
2015?
Sometime
Late 2011/ in 2012?
early 2012
Jan 2011
Effective
Dec 2010 Final date?
Re- Standard?
Exposure
Aug 2010 Re-
deliberations
Comment begin
period
ended
Exposure In July, 2011 the IASB and FASB announced that they would re-
Draft expose (target date is in the 4th quarter of 2011) likely extending
issued the target date for completion of their joint project to sometime in
2012.
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3. Summary of the original proposals in the ED
• The original Proposals would eliminate operating lease Balance sheet
accounting by lessees:
Assets
– Balance sheet grossed up with an asset and liability for all
leases Liabilities
– P&L – geography changes; expense recognition changes Income statement
with front-loading and more volatility Rent expense
• Lease term, contingent rents, residual value guarantees need Amortization
to be estimated and re-measured
Interest expense
• Broad impacts on debt covenants, real estate and equipment
financing strategy (lease vs. own), models for forecasting, EBIT
impacts on incentive compensation plan metrics, etc.
EBITDA
• Additional processes, controls and systems
EBITDAR
• Maintain records to support estimates and periodic re-
EPS
measurements
Cash flow statement
• On transition existing leases are not “grandfathered”
Cash from ops
Cash from finance
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4. Comment letter highlights and subsequent
developments
• Almost 800 comment letters received globally • The boards identified five key areas for
plus input from outreach such as workshops and discussion as follows:
roundtables
- Definition of a lease
• Key concerns included:
- Lessor accounting
- Financial statement impact – e.g.,
- Lease term (i.e., extension option issues)
volatility and front-loading of expense
- Variable lease payments
- Complex to apply and “operationalize” –
e.g., frequent reassessments and - Profit and loss recognition pattern
significant data needs
• Boards also identified an additional list of issues
- Highly subjective estimates and to address
judgments
• Boards commenced re-deliberations in
- Time to implement February 2011
- Cost vs. benefit
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5. Some reactions about the ED and impacts
Reactions
• JP Morgan – “Bringing operating leases onto the
balance sheet and changing the measurement basis of
all leases has the potential to affect significantly the
ratios and related quantities commonly used in
investment decision making.” (October 2010)
• PwC – “Lease accounting for retailers – the biggest
ever accounting change?” (2010 publication title)
• Credit Suisse – “$634 billion in future minimum lease
payments due under operating leases by the companies
in the S&P 500” (August 2010)
• Standard & Poors – “Proposed lease-accounting
requirements likely to affect our analysis” (November
2010)
Impacts by industry
• PwC assessed the impact of the leasing proposals on
the financial statements and key financial ratios of a
sample of approximately 3,000 listed companies
across a range of industries worldwide.
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6. The new leasing model following redeliberations
The boards have listened to constituent concerns and have tentatively agreed to
change a number of key areas:
Definition of a lease
Basic definition No change A contract in which the right to use a specified
asset is conveyed for a period of time, in
exchange for consideration
Distinguishing a service Significant Revise the current IFRIC 4 guidance to better
from a lease change align the concepts in the leasing ED with those
contained in other convergence standards such
as revenue recognition.
Proposed guidance clarifies that a specified
asset can be a component of an asset, but that
component must be a physical asset.
Control is the ability to direct the use of, and
receive substantially all the potential economic
benefit from, the asset throughout the term of
the arrangement.
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7. The new leasing model following redeliberations
Lessee Accounting
Basic lessee model No change Right-of-use model
Lease term Significant Contractual minimum term plus any
change extension options where this is significant
economic incentive to extend
Variable lease payments Significant Only variable payments based on a rate or
change index (such as CPI) to be included.
Income statement No change Upfront expense recognition
recognition
Boards are still deliberating if and when subsequent remeasurement would be
required.
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8. Impact of the original proposed model in the ED
on annual expense
2700
2600
2500
2400
2300
Annual Expense
2200
2100
2000
1900
1800
1700
1600
1500
1 2 3 4 5 6 7 8 9 10
Proposed Model Current model Cash Rents
The chart above depicts the impact on earnings for a basic 10 year lease with an initial annual rent of $2,000, a 2% annual escalation rate
and an assumed incremental borrowing rate of 7%.
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9. The new leasing model following redeliberations
Lessor Accounting
Lessor model Significant All lessors should account for leases using a
change ‘receivable and residual’ . Derecognise the
underlying asset and replace it with a lease
receivable and a residual asset.
If profit on the right-of-use asset transferred to
the lessee is reasonably assured, the lessor
recognises that profit at lease commencement.
The residual asset is measured on an allocated
Boards are still deliberating if and when subsequentbased on the proportion of be
cost basis (that is, remeasurement would the
required. underlying asset’s fair value that is subject to the
lease relative to the portion that is not).
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10. Business implications - the impact is far reaching
Economic
conditions • Accounting/reporting
• Treasury
Operational
Financing • Legal/regulatory
issues
Issues
• Operations
• Corporate real estate
Leasing strategy change
• Information/systems
Effective
Covenant
issues
management • Human resources
of corporate
real estate • Investor relations
Budgetary • Taxes
issues
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11. Next steps
• Monitor developments
• Identify the key stakeholders and educate them on the new
guidance and timing of changes
• Identify and catalogue all existing leases and determine Perform
what data gaps exist an
Be
inventory
• Identify contracts affected (e.g., covenants, compensation Strategic
of lease
arrangements) portfolio
• Estimate the financial statement impact of the transition,
determine effect on debt covenants , credit rating agencies’ Build Be
calculation of “debt-equivalents”, other operating metrics Internal Proactive
and non-GAAP measures, Awareness
• Analyze potential income and other tax considerations
• Consider potential changes in leasing strategy
• Summarize existing systems, control processes and gaps
and determine what level of modification will be needed to
account and report for leases under the new standard
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