IFRS 16 Leases
IFRS 16 came into effect for accounting periods beginning on or after 1 January 2019 and requires all leases to be brought onto the balance sheets of lessees, with only some limited exceptions.
Accordingly, lessees who have significant interests in assets under operating leases are expected to see the most substantial impact on their balance sheet and income statement,
Applying IFRS 16
We can help your organisation understand and implement IFRS 16 by:
- Analysing contracts;
- Identifying leases in the scope of the standard through relevant questionnaires;
- Obtaining relevant lease data;
- Advising on different transition approaches;
- Measuring the transition impact;
- Assisting with a methodology for determining the discount rate; and
- Providing bespoke training.
In addition to impact assessments and contract analyses, we ran a Financial Reporting Forum on leases for organisations with significant interest in lease contracts as lessees. These workshops were run from July 2017 to March 2018. Below, you can download summaries of some of the most pressing issues considered in the Forum to date, being:
Key drivers of determining whether your contract is in or out of the leases standard;
- Taking advantage of the benefits of built-in exemptions;
- Factors concerning lease payments and measurement of lease liability; and
- Advantages and disadvantages of the transition approach options.