IFRS 16 Leases
22 March 2018
By adopting IFRS 16 Leases, the International Accounting Standards Board (IASB) replaces IAS 17 and introduces significant changes in the presentation of leases in the lessee's financial statements. Under the new standard there is no longer a distinction between operating and financial leasing and requires the recognition of all lease agreements in the lessee's balance sheet, with certain exceptions. The obvious change introduced under IFRS 16 is that in most cases a lease will result in an asset being capitalised (a ‘right of use’ asset) together with the recognition of a liability for the corresponding lease payments.
BDO executives are at your disposal to conduct an informative presentation concerning the implications of applying the new standard, the accounting choices a company has on the transition date, and relevant information about the tools we have developed in BDO, for the smooth transition and monitoring of leases.