Leases - IFRS 16
This new standard on Leasing is addressed to all companies that have/are entering in leasing agreements. Ensuring compliance with the new requirements is mandatory starting with 1 January 2019.
Mostly impacted will be the lessees with operating leases under current standard. The new accounting treatment could affect a number of areas:
- Significant impact on a range of key metrics monitored by stakeholders, like EBITDA, EPS, net assets, gearing ratios
- Debt covenants – ratios might need to be renegotiated.
- Share-based payments– performance metrics might need renegotiation.
- Dividend policy – the revised profile of the profit or loss expense might affect the ability to pay dividends.
- Lease negotiations – although accounting should not be the key driver in commercial negotiations, market behaviour might change towards shorter lease tenures to minimize lease liabilities.
At the end of this session, participants will be able to:
- Understand the new business perspective and the main changes brought by the new Standard IFRS 16
- Determine how these changes affect not only the accounting systems, but also their business model and relationships
- Identify the main differences between leasing and other service contracts
- List the main elements a lessee has to consider in recording/ accounting for a lease contract
- Understand what are the exemptions and the impacts in taking advantage of them
- Identify what are the steps to be further taken to get ready on time for the challenges and opportunities brought IFRS 16
- Scope of the Standard
- New definition of leasing and how I correctly identify a leasing contract
- Accounting model for lessee
- Insights to approach more complex areas
- Available exemptions
- Timeline and options for implementation
A qui s'adresse la formation?
Our training will include a summary of the main changes brought by IFRS 16 and examples, as well as highlights on key matters that any professional should know and consider in the view of a successful implementation.
This session is aimed for accounting and audit profession, business developers…. that have exposure to in setting up and accounting for leasing agreements/ operations.