IFRS 16 - Leases

Overview:

The lease standard under Part I – International Financial Reporting Standards (IFRS) 16 was effective for annual fiscal periods beginning on or after January 1, 2019. The impact was significant for all companies that previously had operating leases. The standard will have a significant impact on companies currently using ASPE that have decided to adopt IFRS. This course provides an in-depth review of the new standard, including the objective and scope of the standard, defined terms, exemptions, transitional requirements, and current developments.

This course provides you with an in-depth review of the new lease standard. The entire standard will be covered however more emphasis is on the areas of change which focus on lessee accounting. The starting point will be identifying a lease and the option of separating components of a contract. The lessee coverage will include the principles of recognition, measurement, presentation, and disclosure. The likely costs and benefits of the new standard on the lessee will be discussed and the impact on a company’s financial statements and ratios. The lessor coverage will include the classification of leases as finance or operating and disclosure. The topic of sale and leaseback transactions will be reviewed.

You will have the opportunity to review a number of illustrative examples and exercises. In addition, to help address transitional and application issues the topics related to leases from the IFRS Discussion group and agenda decisions are reviewed.  After attending this course, you will have reviewed the objective and scope of the standard, defined terms, exemptions, and transitional requirements.

Course Content:

In this course, you will gain knowledge about the following topics:

• Overview of reasons for the change, and what has changed
• Introduction to IFRS 16 - objective and scope, defined terms, exemptions, and effective date
• Identifying a lease
  • separate components of a contract lessee and lessor
• Lessee
  • recognition
  • measurement – initial and subsequent
  • presentation
  • disclosure
• Lessor
  • classification of leases
  • finance leases
  • operating leases
  • subleases
  • disclosure
• Sale and leaseback transactions
• Transitional requirements
• Impact of IFRS 16 on financial statements and ratios
• Current developments
• Relevant resources

Learning Objectives:

By the end of this course, you will be able to:

• Explain the requirements of the new lease standard IFRS 16 for both lessee and lessor
• Review the likely costs and benefits of the new standard on the lessee and the impacts on the company’s financial statements and ratios
• Explain the impact of transition and required note disclosure
• Identify potential transitional and application issues
• List relevant resources (with links)

Who Will Benefit: 

Practitioners, financial analysts, and controllers responsible for lease accounting; CPAs interested in understanding the implications of IFRS 16, Leases; and Audit committee members.