IFRS 16 Leases has a single lessee accounting model which replaced the finance and operating lease classification in IAS 17. The standard requires most leases to be recognized on the lessee’s balance sheet. It requires analysis of contracts to determine whether it contains a lease or embedded lease, separation of lease and non-lease components and determination of lease term.
In addition, the standard requires adjustments to lease assets and liabilities for lease modifications, and has been amended in 2020 to introduce a practical expedient in relation to rent concessions due to COVID-19.
This half-day virtual course provides an analysis of IFRS 16 to enable participants to apply the requirements of the standard and evaluate its impact on business and the financial statements. There is use of examples and case studies to explain the application of the standard.
To enable participants to obtain an in-depth understanding of the requirements of IFRS 16:
- Analyze contracts to determine whether they contain leases or embedded leases
- Apply the principles for initial and subsequent measurement by lessee and lessors including recognition exemptions and lease modifications
- Evaluate the impact of sale and leaseback transactions
- Comply with the disclosure requirements
Who Should Attend
The course is useful for preparers and users of financial statements, in particular those dealing with leases and lease accounting:
- Staff in finance, treasury and leasing departments of lessee and lessors
- Internal and external auditors
- IT staff involved in finance change/transformation
A basic understanding of financial statements under any GAAP is a pre-requisite.