ACCOUNTING FOR LONG-TERM ASSETS ACQUIRED ON A LEASE BASIS IN BUSINESS ENTITIES (IFRS 16) AND THEIR AUDIT PROCEDURE

Abstract

The article discusses the issues of accounting and auditing of long-term assets used under lease in the activities of business entities. As a result of the implementation of International Financial Reporting Standards (IFRS 16 "Leases"), the recognition of finance leases and operating leases as a single finance lease has led to significant changes in accounting. This article analyzes the initial and subsequent valuation of assets acquired under lease agreements, their recognition in the balance sheet, the procedure for allocating depreciation, and the mechanisms for reflecting the relevant liabilities. Also, methodological approaches used by auditors to verify the reliability of leased assets and related liabilities, stages of collecting audit evidence and formation of an audit plan were considered. As a result of the study, discrepancies between the current accounting standards of the Republic of Uzbekistan and IFRS 16 were identified, and proposals and recommendations were developed for their implementation in national practice.