Lease Accounting IFRS (International Financial Reporting Standards) is the practice of recording and tracking leases assigned to companies as assets and liabilities. This process ensures that all leased or currently leased assets and liabilities are recognized, reported, and disclosed in financial statements prepared according to International Financial Reporting Standards. The technique also allows entities to recognize their right-of-use assets and associated lease liabilities so that they can be included in their financial statements. Lease Accounting IFRS helps make sure businesses remain compliant with international reporting standards while providing a universal approach to leasing activities.