The new standard, IFRS 16 Leases
The International Accounting Standards Board (IASB) has completed the first major overhaul of lease accounting in over 30 years. The new standard, IFRS 16 Leases, replaces IAS 17 Leases along with three Interpretations (IFRIC 4 Determining whether an Arrangement contains a Lease, SIC 15 Operating Leases-Incentives and SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease).
IFRS 16 will affect most companies that report under IFRS and are involved in leasing. Entities that are lessees of property and high value equipment will experience a substantial impact on their financial statements.
Understanding the impacts to your organization are key in preparing for the change, and avoiding potential issues with implementation and compliance.