Lease Accounting for Auditors - The New Rules
Leasing assets remains a popular and flexible source of financing for many entities and the new IFRS16 significantly changes the way lessees will account for all leases with effect from 1 January 2019 for listed companies.
The new standard eliminates the distinction between an operating lease and a finance lease and introduces a new lease definition, resulting in a right-of-use asset being recognised on the statement of financial position.
This webinar will highlight the new accounting treatment for lessees and the potential impact on the financial position and financial performance.
This webinar is aimed at partners, managers and staff in accounting and audit firms who prepare and audit accounts under IFRS.
What You Will Learn
The webinar will cover the following:
- How to apply the new lease definition and the new accounting treatment for identified leases
- How to apply the two exceptions to the accounting treatment, if relevant
- The impact on key performance measures and financial ratios
- The new lease definition and separating lease and non-lease components
- The accounting treatment for right-of-use assets in the statement of financial position and statement of profit or loss
- Determining the lease term - assessing if reasonably certain to exercise any option to extend or terminate early
- The two optional exceptions; low value items and short-term leases
- The impact on key performance measures and financial ratios and the wider impact on covenants and credit ratings, etc
- The transitional options available; full retrospective or a modified retrospective approach, considering the cost and effort of obtaining information and the impact on the figures/results
- Key audit issues arising from the implementation of IFRS 16