IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosures of leases for both parties to a contract, involving the customer or “lessee” and the supplier or “lessor”. In January 2016, after a ten year review, the International Accounting Standards Board (IASB) issued a new International Financial Reporting Standard - IFRS 16 Leases, which requires lessees i.e. customers who are leasing an asset, to recognise assets and liabilities for leases on their balance sheet.
At HCL our Regulatory Finance practice is helping meet our client's CFO agenda in preparation for the new accounting standard IFRS16. The new Finance standard which becomes effective on 1 January 2019 define how organizations must account for leases. These accounting standards stipulate most leases must be capitalized, increasing the risk of regulatory non-compliance through incorrect implementation.
Download our whitepaper to understand the changes underway and know how we can aid you in the implementation.