Published / 18/12/2018
What is IFRS 16?
IFRS 16 is a new lease accounting standard which would be applicable to most of the organizations from over 120 countries that currently adhere to the IFRS (International Financial Reporting Standard) accounting framework.
IFRS 16 requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. A lessee is required to recognise a right-of-use asset representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments.
What is expected from you?
You need to reassess how lease information is recorded and how underlying cost affects the financial statements in coming years. This could involve recategorizing your equipment, space and vehicles leases.
When is it due?
Research conducted by our leasing expert team shows that many organizations are still trying to determine the impact and best way to implement IFRS 16. The deadline is getting closer and time is running out. Although the standard was formulated in 2016, the effective date for its introduction is 1st January 2019.
How can NJW help you?
Our leasing team will work alongside your Accounting team to assess your current leasing portfolio. Furthermore, we will help you in recategorizing your leases using TRIRIGA IWMS solution which is highly compatible with new accounting standards. We have huge experience in implementation of the Leasing system; our unique way and industry knowledge will be helpful in speeding up the implementation process to get you IFRS 16 compliant.
You can download our Flyer here: Flyer – IFRS 16