IFRS 16 Leases - Managing The Risks of First Time Adoption
Early in 2016 IFRS 16 Leases was issued, bringing to a close years of debate on the future of lease accounting. The standard needs to be adopted for accounting periods beginning on or after 1 Jan 2019, however, the enormity of the task of transitioning to the new rules should not be underestimated and organisations need to start planning for this immediately.
This new standard brings with it considerable challenges including how to manage stakeholders around the potentially significant changes to the financial statements, and how to set up processes to capture the information required. It will remove the current distinction between finance leases and operating leases. Instead there will be a single model applicable to all leases.
This model will bring most leases onto the balance sheet with an asset and a corresponding liability. Due to the impact on key financial ratios this will affect bank covenants, credit ratings and how others view your organisation's financial position. Following feedback from respondents the IASB have introduced exceptions for short-term and low-value leases. The course will explain what these are and explore when they should and shouldn't be used.
Suitability - Who should attend?
This course is for the Analyst, Manager, Trusted Advisor and Business leader.
Training Course Content
- Rationale for the accounting change.
- Overview of the new framework for leases.
- Exemptions and when it is appropriate to use them.
- The commercial impact of the changes and a discussion around how these need to be managed.
- The exceptions for short-term and low-value leases.
- Contracts with lease and service components.
- Effective date transition.
- The systems and process changes you will need to implement and when.
- Practical exercises to aid understanding.
ICAEW Member £296.00 + VAT Non-Member £370.00 + VAT Communities/Faculty Member £259.00 + VAT
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