Referring to the review conducted by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) in 2016 regarding the accounting treatment of lease contracts, which resulted in the issuance of "International Financial Reporting Standard No. 16 - Leases" and the update of Accounting Standards Update No. 2016-2, which will come into effect from January 1, 2019, for entities with fiscal years ending on that date, with an option for early adoption of the standards.

We would like to inform you that both standards require the recognition of lease contracts in the financial statements, with lease payments recorded as liabilities on the balance sheet, while the right-of-use assets are recorded as assets.

Given the numerous inquiries regarding these standards, the Basel Committee on Banking Supervision has reviewed frequently asked questions (FAQs) and published their responses in April 2017. Therefore, the Central Bank emphasizes the importance of reviewing the questions and answers on the Bank for International Settlements website.