New leasing Standard IFRS 16 issued has been saved
New leasing Standard IFRS 16 issued
IFRS 16 Leases 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 systems investments lying in wait for many.
How can Deloitte help?
Although companies have three years until they are required to present their financial statements under IFRS 16, significant preparation is required and the time to take action is now. Deloitte’s IFRS 16 team is a multi-disciplinary group dedicated to helping businesses successfully implement this complex new standard. Deloitte is also uniquely positioned to support businesses in addressing the wider commercial impacts of IFRS 16 thanks to smart technology solutions and a market-leading property advisory business.
Our publication ‘Time to take action’ provides guidance on how companies should prepare for the new standard and information on how Deloitte can provide support.
The Deloitte view
Veronica Poole, Deloitte’s global IFRS leader and UK head of accounting, said: “It has been a long haul with many twists and turns along the way. But the real challenges start now and the volume of work in the lead up to a 2019 implementation must not be underestimated. Identifying all the relevant transactions is challenging enough, not least the boundary between what is now considered a ‘lease’ and a ‘service’. What is in and what is out will result in a series of difficult judgements. The final result should be clearer for both preparers and investors, since a very obvious part of financing will become explicit rather than remain implicit. Ultimately, today’s standard will ensure a more accurate outcome that investors will welcome.”
Read our full press release.
Our one stop shop for all the latest corporate reporting news, UK Accounting Plus, provides further information on the new Standard, including:
- a video interview with IASB Chairman, Hans Hoogervorst and Deloitte’s Global IFRS Leader, Veronica Poole about the new Standard;
- a comprehensive ‘Need to know’ newsletter, setting out the new standard’s requirements;
- our Guide to IFRS 16 containing the requirements of the Standard, some interpretive guidance and a worked example of the 3 transition approaches; and
- industry-specific insight in our concise ‘Point of view’ newsletters - versions are already available for the aviation industry, property occupiers and telecoms.
Visit our dedicated IFRS 16 resources page at UK Accounting Plus.
To make it easy to contact Deloitte’s dedicated IFRS 16 team we have a dedicated mailbox. Email IFRS16@deloitte.co.uk to arrange an initial consultation and the right Deloitte people will be able to assist you. You can also speak to your usual Deloitte contacts.