Entities who have any form of lease will be impacted by changes to lease accounting definitions and thus accounting standards under NZ IFRS 16, applying to financial years beginning on or after January 1, 2019.
The changes will see a single accounting model for all leases, where there is no distinction between finance and operating leases for lessees. This single recognition model will require all entities to recognise both assets and liabilities arising for all leases, with limited exemptions. The outcome of these changes could have significant impact on classifications in financial reporting and therefore effect an entity’s overall financial position.
The following comparative report, Lease Accounting prepared by William Buck, outlines the key changes, transition options and new accounting scenarios as well as possible consequences from these changes.
For further information regarding these changes contact your William Buck local office.
All the Latest From Our Team
5% of ASX-listed companies delisted in 2019-20
Posted By William Buck News on 04/08/2020 06:17:23 am
The clampdown on reverse listings and de-listings of long-suspended companies bites listed ASX shells for the year ended 30 June 2020 During the financial year…
Don't underestimate the implications of AASB 16 leases
Posted By William Buck News on 11/10/2019 05:29:54 am
Since the new leases standard – AASB 16 – came into effect earlier this year, it’s presented several operational challenges with entities now needing to…
Important changes to lease agreements
Posted By William Buck News on 14/08/2019 04:38:53 am
Do you work in a finance team, sit on a Board, or are you a business owner? Do you need to report to ASIC or…