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?