Ready for IFRS 16? The new accounting standard for leases

whitepaper ready for ifrs 16

IFRS 16 Leases represents a fundamental change in the accounting for leases on the part of lessees. Leases which were once treated “off-balance” as operating leases are now required to be recognised on-balance, resulting in enormous impacts on financial figures.
Lessees are now required to recognise right-of-use assets from leases on their balance sheet and recognise future payment obligations as a liability. This means that not only will the balance sheet change significantly but so will key indicators of many companies – particularly those that have large numbers of leased assets.

IFRS 16 replaces the following standards and interpretations:

  • IAS 17 Leases
  • IFRIC 4 Determining whether an Arrangement contains a Lease
  • SIC-15 Operating Leases – Incentives
  • SIC-27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease

Contents

  • Objective of IFRS 16
  • The fundamental changes
  • Accounting by lessees
  • Consequences of IFRS 16 for lessees
  • Your flexible solution for IFRS 16
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