Lease Disclosures – considerations

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We published a post earlier on how to implement IFRS 16 on leases on a sustainable way. As noted there, sustainability includes that the core process provides as much data for disclosure requirements as possible. As underpinned by several comprehensive post-implementation studies, the projects were harder than expected, and the new standard considerably increased workload of annual reporting. The fact that a substantial portion of IT tools applied for lease accounting (almost half of them as per the study quoted above) further contributed to this. It might therefore be useful to have a look on these disclosure requirements now, when the preparation of the first, IFRS 16 compliant annual report preparation is knocking on our doors. We consider lessee aspects, since lessor requirements did not change significantly.

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Lease accounting – how to make it sustainable

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IFRS 16 on leases kicked in the doors from 1 January this year. This standard gave (or should have given) some headache to most companies using IFRS, regardless of the sector or the type of reporting they are required to do. Plenty of information and great advisory materials came out on the accounting methods brought in by IFRS 16 (tip: if it does not deal with lease modification, it is just scratching the surface…), comparing the new and “old” lease accounting, shedding some light on adoption choices (full or modified retrospective) and so on. This post is not something “just another one of those”. What we want to have a deeper look at is how to actually implement IFRS 16, in particular how to make it sustainable. If your IFRS 16 project lacks any of the points we discuss below, it might be worth having a second glance at it to avoid surprises later.

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IFRS 15 – The 5-step model – part two

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Now we continue our analysis of IFRS 15 with the aim to provide an overview of the main features and requirements of the new revenue standard. Now let’s see the remaining steps of the 5-step model.

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IFRS 15 – The 5-step model

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In our 2-part post, we intend to summarize the main features of the new revenue standard, by which we would like to assist companies keeping their books in, and/or reporting according to, IFRS in the application of the new standard.

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