IFRS 16: Advisory Services, Accounting Advice and Implementation

Time to Act Now

IFRS 16 Leases was adopted in January 2016 and is mandatory as of 1 January 2019. 

This standard may have significant implications for you such as:

  • It can materially change the balance sheet and the profit or loss statement.
  • More information will be required than is currently available to many companies.
  • Significant resources and improvements to existing IT systems may be required.
  • Important decisions on a number of standard provisions will have to be made at an early stage.
  • It will effect many internal functions, such as - accounting, financial, analytical, treasury (covenants),  HR (compensation schemes).
  • New opportunities to review the lease strategy will arise as well as a chance to review the approach to the lease business process management.

10 key questions companies should ask themselves:

  1. Do I know which agreements are lease agreements in accordance with IFRS 16?
  2. Can my IT systems and processes accumulate all the information on all lease agreements required for the application of IFRS 16?
  3. Can IT system provide information for the required ongoing assessment of lease agreements?
  4. Have you considered the applicability of exemptions and practical expedients?
  5. Have you chosen transition method to IFRS 16?
  6. Have you decided on which IT solutions to use to implement the IFRS 16?
  7. Have you decided which discount rates to use for various leases?
  8. Have you assessed the possible impact on the balance sheet and the profit or loss statement?
  9. How will you inform external users of financial statements about the expected changes?
  10. Have you considered the possibility of changing the lease strategy due to the adoption of IFRS 16?  

Deloitte can assist you with the following:

Advisory services

  • Identifying lease agreements in accordance with new requirements
  • Assessing your readiness to transition from methodology, IT and resources perspective
  • Assessing the completeness and quality of the information available
  • Providing methodological support
  • Assessing the impact of the standard on the financial statements
  • Helping you to select best option for the transition to the new standard


Accounting support

  • Developing accounting policies and settling down on the key judgements
  • Calculating accounting adjustments (including retrospective adjustments, if needed)
  • Preparing draft disclosures



  • Assessing the existing business process including risks and controls, and leased property management
  • Developing target business process models and roadmaps to achieve those
  • Developing efficient controls for lease accounting
  • Making necessary changes to the accounting systems
  • Automating accounting adjustments calculations (in SAP, 1C, etc.)
  • Developing turnkey IT solutions 

Key contacts in CIS:

Caspian region, West region