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IFRS 16 is the International Financial Reporting Standard that governs lease accounting, replacing IAS 17. Issued by the International Accounting Standards Board (IASB), it became effective on January 1, 2019. Objective of IFRS 16: The standard aims to improve transparency and disclosure in financial statements by providing a uniform approach to accounting for leases. Key Changes in IFRS 16: Lease Recognition on the Balance Sheet: IFRS 16 requires lessees to recognize nearly all leases (both operating and finance leases) on the balance sheet as assets (right-of-use assets) and liabilities (lease obligations). This differs from IAS 17, where many leases, particularly operating leases, were not recorded on the balance sheet and were instead expensed in the income statement. Right-of-Use Asset: Lessees must recognize a right-of-use asset representing their right to use the leased asset for the lease term. Lease Liability: A lease liability must be recorded representing the present value of future lease payments the lessee is obligated to make.

📚 Just published a new blog post on Mastering IFRS 16 Lessee Accounting! 📊💼   In our latest guide, we dive into how you can master IFRS 16.   Key Points: 🔹 Introduction of IFRS 16 lease accounting  🔹 Types of IFRS 16 leases : Considerations for lessees  🔹 Detailed overview: IFRS 16 lease accounting processes  🔹 Financial statement disclosure requirements for lessees and their impact 🔹 Tools and technology for managing lessee accounting under IFRS 16  🔹 Final thoughts on IFRS 16 lessee accounting    Excited to learn more? Dive into the full guide and download our interactive Excel workbook for a hands-on experience! Stay tuned for the upcoming blogs on IFRS 16 and lease accounting.   #IFRS16 #LeaseAccounting #AccountingStandards https://lnkd.in/dWta8K53

IFRS 16 is an International Financial Reporting Standard issued by the International Accounting Standards Board (IASB). It pertains to the accounting for leases and provides a comprehensive framework for the recognition, measurement, presentation, and disclosure of leases. Key aspects of IFRS 16 include: 1. **Lessee Accounting**: Lessees are required to recognize most leases on their balance sheets. This involves recognizing a right-of-use asset and a corresponding lease liability, reflecting the present value of lease payments. 2. **Lessor Accounting**: Lessor accounting remains similar to the previous standard, IAS 17. Lessors classify leases as either finance or operating leases. 3. **Measurement**: The right-of-use asset and lease liability are initially measured at the present value of lease payments, which includes fixed payments, variable payments based on an index, and certain extension or termination options. 4. **Disclosure**: IFRS 16 requires extensive disclosures to help users understand the impact of leases on the financial position, performance, and cash flows of an entity. The standard aims to provide greater transparency and comparability regarding lease obligations and the assets used in a company's operations.

Just want to remember IFRS 15 again after an error I noticed. IFRS 15 is the International Financial Reporting Standard that provides guidance on how and when revenue from contracts with customers should be recognized. It was issued by the International Accounting Standards Board (IASB) in May 2014 and became effective for annual reporting periods beginning on or after January 1, 2018. IFRS 15 outlines a five-step model for recognizing revenue: 1. Identify the contract(s) with a customer. 2. Identify the performance obligations in the contract. 3. Determine the transaction price. 4. Allocate the transaction price to the performance obligations. 5. Recognize revenue when (or as) the entity satisfies a performance obligation. The standard applies to all contracts with customers, except for leases, insurance contracts, financial instruments, guarantees, and certain non-monetary exchanges between entities in the same line of business. IFRS 15 aims to improve the consistency and comparability of financial reporting related to revenue recognition across different industries and jurisdictions. It also provides more comprehensive guidance on revenue recognition, addressing various complex scenarios that were not previously covered by existing standards. It's important for companies to understand and apply IFRS 15 correctly to ensure that their financial statements accurately reflect the timing and amount of revenue earned from contracts with customers. Companies may need to make changes to their accounting policies, systems, and processes to comply with the standard.

In this 30-minute session our IFRS 16 product manager Karl Oscar Rosli, and I will deep-dive into IFRS 16 reporting. We will talk about common challenges businesses face when managing IFRS 16 in Excel, and how converting from Excel to lease accounting software can create business synergies and make the IFRS 16 burden easier to carry.   These are some of the questions we will be answering during the webinar: What are common challenges when managing IFRS 16 in Excel? How can you distribute the IFRS 16 burden? How can an IFRS 16 software make compliance easier? Please reach out if you have any questions or if you want a complete demo :-) https://lnkd.in/dRHUNrMA

IASB issues IFRS 19** The International Accounting Standard Board (IASB) has today issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 Subsidiaries without Public Accountability: Disclosures permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements. IFRS 19 will resolve these challenges by: 1) enabling subsidiaries to keep only one set of accounting records―to meet the needs of both their parent company and the users of their financial statements; and 2) reducing disclosure requirements―IFRS 19 permits reduced disclosures better suited to the needs of the users of their financial statements.

IASB issues IFRS 19** The International Accounting Standard Board (IASB) has today issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 Subsidiaries without Public Accountability: Disclosures permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements. IFRS 19 will resolve these challenges by: 1) enabling subsidiaries to keep only one set of accounting records―to meet the needs of both their parent company and the users of their financial statements; and 2) reducing disclosure requirements―IFRS 19 permits reduced disclosures better suited to the needs of the users of their financial statements.

IASB issues IFRS 19**  The International Accounting Standard Board (IASB) has today issued a new IFRS Accounting Standard for subsidiaries. IFRS 19 Subsidiaries without Public Accountability: Disclosures permits eligible subsidiaries to use IFRS Accounting Standards with reduced disclosures. Applying IFRS 19 will reduce the costs of preparing subsidiaries’ financial statements while maintaining the usefulness of the information for users of their financial statements.  IFRS 19 will resolve these challenges by:  1) enabling subsidiaries to keep only one set of accounting records―to meet the needs of both their parent company and the users of their financial statements; and 2) reducing disclosure requirements―IFRS 19 permits reduced disclosures better suited to the needs of the users of their financial statements.

Let's talk about IFRS 16- Leases IFRS 16 is an accounting standard that sets out the principles for the measurement, recognition, presentation, and disclosure of Leases. This standard introduces a single lessee accounting model and requires a lessee to recognise asset and liabilities for all leases with a term of more than 12 months, unless the underlying asset or liability is of Low value, low value that is "Low value asset or short term lease". At the commencement date of a lease, The lessee recognises the right of Use Asset and Lease Liability. At Initial measurement, lessee accounts for Leases using the Right of Use Asset measured at Cost , at subsequent measurement its accounted using depreciation and impairment charges. While at Initial Measurement, Lease Liability is measured at the present value of Lease payments that are not paid at commencement date. In conclusion, IFRS 16 replaced the accounting standard IAS 17, The emergence of IFRS 16 as helped improve transparency in Financial statements, and has impacted the profitability and tax implications of lessees.

IFRS 16 leases, IFRS 16 introduces a single lessee accounting model and 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.