What is IFRS 16? A Nomos One whitepaperNomos One IFRS 16 resources
What is IFRS 16 and how will it impact your organisation?
International Financial Reporting Standard (IFRS) 16 Leases introduces a single accounting model for leases held by lessees. Essentially lessees are required to recognise a liability for the future lease payments and an asset that represents their right to use the leases asset. This results in lessees recognising right-of-use assets and lease liabilities on balance sheet.
This means the lease liability is an amortising liability and interest is accrued and expensed every year. The right-of-use asset is equal to the lease liability, plus any prepayments, initial direct costs incurred, and estimated restoration obligations. The assets are depreciated over the useful life in the same manner as what property, plant and equipment would be.
The adoption of IFRS 16 will require considerable use of judgement and many months’ work. Organisations also need to ensure they have a robust system in place to meet their ongoing reporting obligations.
Nomos One white paper
The team at Nomos One have published a white paper on IFRS 16 to explain what the new standard means for your organisation. It covers:
- An explanation of the standard
- An overview of IFRS 16 transition methods
- How IFRS 16 compares to other accounting jurisdictions
- How IFRS 16 will affect your organisation
- The steps are required for compliance
- Market learnings