The first effective dates for the international lease accounting standard, IFRS 16, were in January 2019. The compliance standard requires that all leases be reported as finance leases unless the lease term is less than 12 months or the value of the lease is less than US$5000. The on-balance sheet requirement of the standard created an implementation challenge for many companies. The challenge is exacerbated for companies with large equipment leasing portfolios because equipment leasing programs are typically decentralised, making it difficult to track down the data needed to comply with IFRS 16 and other lease accounting standards.
Download the IFRS 16 Lease Accounting Compliance Standard handbook to learn more about IFRS 16, the effects the standards will have on your business, how to staff and budget for the implementation project, and what to look for in lease accounting software.