Executive Summary Since April 2019, due to the introduction of IFRS 16 / Ind AS 116 – Leases, there has been a significant change in the way leases are accounted for, especially by the lessees. As per the earlier leasing standard, lessees were required to account for lease transactions as operating or finance lease depending […]
IFRS 16 LEASES Potential impact on key sectors Introduction Modern business environment is becoming increasingly complex. To succeed in these circumstances, the firms aim at growth with stability. Internal and external sources of finance are insufficient to cater the needs of expansion, diversification and modernisation. Leasing is an important and widely used financing solution. It […]
Differences between IFRS 16 and IAS 17 Leases Key differences Area IAS 17 IFRS 16 Classification of lease by lessee Lessees account for lease transaction as operating or finance lease depending on rules and tests of classification. Lessees to recognise nearly all leases on the balance sheet which will reflect their right-to-use an asset for […]
IFRS 16 & ASC 842 – LEASES FREQUENTLY ASKED QUESTIONS (FAQs)