IFRS 16 Background

IFRS 16 Background

The main impact of IFRS 16 Leases is on lessee accounting. Saket explains the extent of this impact in terms of comparing it to IAS 17 Leases, the accounting model and the performance metrics.
Overview

The main impact of IFRS 16 Leases on lessee accounting. Whilst the impact on lessor accounting is minimal, there are additional disclosure requirements. The transition to IFRS 16 primarily affects financial and performance metrics, for example, EBITDA and financing cash flows. Two main methods can be utilised in transition, these are the modified and full retrospective approaches.

Key learning objectives:

  • What are the requirements of IAS 17?

  • How does IFRS 16 differ from IAS 17?

  • What is the impact of transition to IFRS 16 Leases?

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Summary
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Expert
Saket Modi

Saket Modi

Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.

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