IFRS 16 and AASB 16
Resources to Help Your Company
Get Compliant and Stay Compliant
Why the New Standards Were Introduced
IFRS 16 was introduced to close a major loophole of the previous lease accounting standard — off-balance sheet operating leases — in order to provide investors with a more accurate depiction of the financial state of companies. AASB 16 is the version of the new lease accounting standard in Australia, and closely follows the rules set by IFRS 16.
Hurdles for Adopting the New Standards
Collecting data from all leases – which could be scattered in systems, spreadsheets, and file cabinets around the world – has been cited as the #1 challenge at many companies. In addition, companies have struggled with identifying embedded leases, establishing materiality thresholds, and defining IBRs to be used in various countries.
Challenges for Maintaining Compliance
To maintain compliance, companies must establish policies, processes, and controls that will keep the lease portfolio accurate and complete to withstand increased auditor scrutiny. Companies will need to capture all leases as they are signed and keep the data up-to-date as decisions are made throughout the lease lifecycle.
For Software Selection
Lease Accounting Software Evaluation Guide
The evaluation guide allows you to compare lease accounting and administration solutions from different vendors based on the software features required for ongoing compliance with the new standards.
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See How You Compare
The ASX 100 Lease Accounting Impact Study ranks the companies on the ASX 100 index by their operating lease obligations to determine which companies in which industries will see the largest impact to their balance sheets and income statements.
Achieving Compliance by the Deadline
How to Get Started with the Lease Accounting Standards
For companies that are just now starting their implementation of the new standards, the How to Get Started Guide details the major steps organisations should take in the first 90 days of the lease accounting project to avoid falling behind or overlooking critical tasks.
Final 90 Day Checklist
Many companies will soon be entering the final 90 days before their implementation deadline for the new standard. This document provides a useful checklist of the 90 things companies should try to do in the last 90 days to make both the transition and ongoing compliance go as smoothly as possible.
Cummins Equipment Lease Management
Learn how this global Fortune 500 company based in the U.S. successfully brought their lease portfolio under control – making their leasing processes easier to manage while also generating savings.