IFRS 16 - Leases

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IFRS 16 - Leases

Implementing of new accounting standards

Deloitte’s Financial Reporting Advisory team assist clients to develop proactive yet measured approaches to help navigate the adoption of this complex new accounting standard.

IFRS 16 - Leases

The IASB has published its long awaited Leases Standard IFRS 16, effective for periods beginning on or after 1 January 2019.

This standard will result in many leased assets, previously held off balance sheet, being brought onto companies’ books, potentially adding billions in lease-intensive industries. Balance sheets, income statements and KPIs could all be fundamentally affected with challenging judgements, choices and system requirements lying in wait for many.
 

IFRS 16 - Leases: The time to act is now. So get it on balance sheet!

Phase One – Assessment & Advice

  • Conducting a high level impact assessment;
  • Assisting in lease data aggregation by surveying business units to identify and capture lease data and perform a preliminary impact analysis;
  • Supporting assessment of whether systems and processes can capture relevant information and provide required reassessments with technical subject matter experience; and
  • Providing advice and recommendations on accounting and tax evaluations.

Phase Two – Development & Implementation

  • Developing the impact assessments into project plans and detailed implementation roadmaps;
  • Performing a system-capabilities assessment and providing insights and observations on available information technology solutions, including vendor benchmarking;
  • Providing insight and observations about project management; Helping coordinate IFRS considerations with other significant finance or information technology initiatives;
  • Assisting with the design and implementation of process and control changes required as a result of adoption.

Implementation of IFRS 16

The implementation of IFRS 16 – Leases will have a significant effect on the financial statements of many entities with significant KPI’s such as ROCE and EBITDA likely to be affected. Included here is an overview of industry specific considerations in relation to the implementation of IFRS 16.

Need to know: IFRS 16 - Leases

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Ciarán O' Brien

Ciarán O' Brien

Partner - Audit and assurance

Ciarán is a partner in our Audit & Assurance department. He currently serves a portfolio of clients in the consumer business, energy and technology sectors. Ciarán has substantial IFRS experience, hav... More

Sinéad McHugh

Sinéad McHugh

Partner - Audit and assurance

Sinéad is a partner in our Audit & Assurance department and also leads our Financial Reporting Advisory team, who provide accounting advice on matters under IFRS, US GAAP and Irish GAAP across all sec... More

Michelle Byrne

Michelle Byrne

Director - Financial Reporting Advisory

Michelle is a director in our financial reporting advisory team. She currently advises clients on key accounting matters, under both IFRS and Irish GAAP. She manages specialist assignments and her exp... More