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Article in the series of Lease Implementation Dilemmas as a result of the introduction of IFRS16 for listed companies and others that follow IFRS reporting requirements.
Benefits of and how to deal with lease transactions with service elements.
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For listed companies and those who voluntarily choose to follow IFRS reporting guidelines, the latest date – 1 January 2019 – for IFRS16 to take effect is approaching.
With the introduction of IFRS16, the new accounting standard for lease agreements, a number of dilemmas arise.
Tweuus searches for best practices.
This time, lease transactions with service elements and IFRS16.
Leases with services have a number of advantages:
accounting
All lease related articles issued by Tweuus up to publication date, 13 Jan. 2016, of IFRS 16.
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accounting
See the Lease Transition Suggestions to understand the required choices and their rational for the migration towards the new lease accounting standard, IFRS 16 Lease.
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accounting
With the new standard IFRS 16 Leases, the International Accounting Standards Board acknowledges that leases are a separate category of transactions. So, there is a case for a form of depreciation doing justice to leases.
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accounting
Thé one question when implementing leases under the new lease accounting standard, IFRS 16 is: which interest percentage are we going to apply?
The challenge is bigger than many think. The result may surprise even more!
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