While the Leases standard – AASB 16 (IFRS 16) – has been widely adopted, it continues to bring challenges to companies when applying to existing and new leases. Whether it is dealing with scoping issues, modification of lease arrangements or re-measurement of the lease liability, lease accounting is not always straight forward.
Application of the leases standard also has flow-on impacts to other standards, for example, impairment and tax-effected accounting, from time to time. Our insights will help you understand the requirements of this standard as they relate to your company, as well as offering insights and guidance on more complex application issues.
AASB 16 FAQs
Have you considered these questions?
Application of the lease standard should consider a range of different issues around identification of leases, recognition and measurement, disclosures and flow-on impacts to other standards.
We share our perspectives on the common questions we hear.
- What term is used for allocating consideration?
- How do multiple index-dependent lease payments vary?
- Are lease payments linked to CPI estimates?
- Are outgoings recognised on balance sheet?
- Should you recognise short-term or low value leases on your balance sheet?
- What lease payments are included when calculating the FVLCOD of a CGU?
- Any impacts on lessees’ cash flow statements?
- Embedded leases – immunity for lessors?
- Can you capitalise depreciation and interest expense?
Key contacts
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