IFRS Update: Leases (IFRS 16) Training Beirut 2016

On 13 January 2016, the International Accounting Standards Board (IASB) published IFRS 16, ‘Leases’, which replaces the current guidance in IAS 17. This will require far-reaching changes in accounting; by lessees in particular. The new standard fundamentally changes the way companies will account for their operating leases by putting the assets on the balance sheet with a respective liability. This will have an impact on the debt/equity ratios, lending covenants and market facing indicators of performance and will require a significant amount of time to identify and account for existing leases through the transition phase.