Accounting for lease: what you need to know

Formation inter et intra-entreprise

À qui s'adresse la formation?

  • Accounting and audit professionals,
  • Business developers
  • Any professionals who have exposure to setting up and accounting for leasing agreements/operations

Niveau atteint

Avancé

Durée

3,50 heure(s)

Langues(s) de prestation

EN FR

Prochaine session

Objectifs

From January 2019, all companies that have/are entering in leasing agreements have to comply with the IFRS 16 requirements.

Mostly impacted are the lessees with operating leases under current standard. The new accounting treatment affects 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 minimise lease liabilities

Our training includes examples, as well as highlights on key matters that any professional should know and consider in the view of a successful implementation.
By 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 exemptions are available and the impacts of taking advantage of them;
  • identify the steps to be taken to get ready for the challenges and opportunities brought IFRS 16.

Contenu

  • Scope of the IFRS 16 standard
  • New leasing definition and how to correctly identify a leasing contract
  • Accounting model for lessee
  • Insights to approach more complex areas
  • Available exemptions
  • Timeline and options for implementation

Informations supplémentaires

This training is coordinated by Philippe Förster, Lead Partner of IFRS Learning Solutions of PwC Luxembourg.

It will be led by experts of PwC Luxembourg who are actively engaged in the daily implementation of the IFRS norms.

Philippe Förster is the IFRS leader for PwC Luxembourg and a partner in the Assurance practice. With over 20 years of experience serving financial and multinational institutions by providing audit and advisory services, he is a member of various PwC International IFRS working groups, including GACS (Global Accounting and Consulting Services), Financial Instruments Topical Team (FITT), and Corporate Treasury Technical Committee (CTTC). Philippe played a crucial role in developing our global guide: Hedge Accounting in Practice.

Philippe graduated from HEC-University of Liège-Belgium. He is a qualified 'réviseur d’entreprises' in Luxembourg.

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