IFRS 16 Leases is effective for periods beginning on or after 1 January 2019 and replaces IAS 17 Leases and related interpretations. The new standard introduces a single lessee accounting model to replace the finance and operating lease classification in IAS 17 and results in all leases being recognized on the lessee’s balance sheet. It requires analysis of contracts to determine whether it contains a lease or embedded lease, separation of a lease and non-lease components and determination of lease term. In addition, the standard also requires adjustments to lease assets and liabilities for lease modifications. There are enhanced presentation and disclosure requirements.
This one-day course provides an in-depth analysis of IFRS 16 to enable participants to apply the new requirements and evaluate its impact on business and financial statements. There is extensive use of examples and case studies to explain the application of the standard.
To enable participants to obtain an in-depth understanding of the requirements of IFRS 16:
- Analyse contracts to determine whether they contain leases or embedded leases
- Apply the principles for initial and subsequent measurement by lessee and lessors including recognition exemptions and lease modifications
- Evaluate the impact of sale and leaseback transactions
- Comply with the enhanced disclosure requirements
- Review the transition options and apply the practical expedients
- Evaluate the practical implications of IFRS 16 on different sectors
- Review the key differences between IFRS and US GAAP
Who Should Attend?
The course is useful for users of financial statements, in particular, those who are dealing with leases and lease accounting in the following departments:
- Internal and External Auditors
- IT Staff, involved in finance change/transformation