What is IFRS 16?
What is IFRS 16 and what does it mean to 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.
Download your free IFRS 16 white paper here
This white paper 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 required for compliance
- Market learnings
Please see our IFRS 16 resources for more IFRS 16 related content.
Is this resource free?
Yes. Nomos One employs a team of experts who live and breathe IFRS 16. We want to share our knowledge with you so your implementation project and ongoing reporting requirements are as efficient, accurate and simple as possible. When it comes to IFRS 16 Leases and lease management Nomos One has you completely covered.
Want to know more?
Please speak with one of our leasing experts about your IFRS 16 reporting requirements. We can provide you with a customised product demo, including our built-in IFRS 16 module.