The rules for lease accounting will change per January 2019, for all companies reporting according to the IFRS standards. The IFRS standard for leasing is IFRS16.
What is IFRS16 and what could be the impact for your company?
The new financial reporting standard for leasing will significantly impact many corporates’ reported earnings, assets and liabilities, and will change the classification of expenses and cash flows, such that reported results, and the associated impact on covenant tests, may well vary materially.
Whilst IFRS16 is only applicable to periods from 1 January 2019, lenders and their corporate borrowers should start evaluating the potential impact of this now, to avoid surprises when the standard is implemented. It may have a bearing on current negotiations regarding future covenants, cash sweep mechanisms, management incentive structures and the like.
IFRS in 30 seconds!
We can offer you:
- A detailed Power Point Presentation and video
- A Frequently Asked Questions document
- Fully trained account management team on the consequences of IFRS16
- A scan in which we can analyze the requirements for your company
- We provide the necesairy data you require
- Help you identify the effects of IFRS in relation to your KPI's
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