Accounting for financial leases AAS17 requires explicit disclosure of financial lease obligations on the firms balance sheet a Lease payments under a financial lease must be capitalised, ie the Pv of all lease payments is included as an asset and a corresponding liability on the balance sheetAccounting for Financial Leases ◼ AAS17 requires explicit disclosure of financial lease obligations on the firm’s balance sheet. ◼ Lease payments under a financial lease must be capitalised, ie the PV of all lease payments is included as an asset and a corresponding liability on the balance sheet