ACCOUNTING AND ANALYSIS OF FINANCIAL LEASING LIABILITIES: CONCEPTUAL FOUNDATIONS, REPORTING CHALLENGES, AND ANALYTICAL PERSPECTIVES

Abstrak

Financial leasing has emerged as one of the most consequential mechanisms through which enterprises acquire productive assets without immediate capital outlay, giving rise to a class of long-term liabilities that carry distinct recognition, measurement, and disclosure requirements. This article examines the accounting treatment of finance lease liabilities under the prevailing international financial reporting framework, with particular attention to IFRS 16 Leases and its analytical implications for financial statement users. The discussion traces the evolution of lease accounting from the risk-and-rewards model to the right-of-use asset paradigm, explores the practical difficulties that arise during initial recognition and subsequent measurement, and evaluates how the resulting liability figures affect leverage ratios, interest coverage, and asset-base assessments. Special attention is devoted to disclosure quality, lessee classification judgment, and the persistent comparability challenges that auditors and analysts encounter across industries. The article concludes with observations on current developments in standard-setting and the need for more consistent interpretive guidance in practice