With IFRS 16 implementation drawing ever closer, Peter Westaway explains how relevant parties will be affected.
Although mandatory implementation of IFRS 16 Leases is a year later than IFRS 9 Financial Instruments, waiting until its implementation before turning to IFRS 16 could be a recipe for disaster. With the lead-time rapidly diminishing for IFRS 16, organisations should by this stage have a plan and timeline in place for how they will be managing the transition and the impact it will have.
For those in the financial services industry, there are more angles to consider than in many other cases. Such companies often find themselves acting as lessees, as lessors and as lenders to lessees – in each of these capacities some level of change can be expected as implementation of the new Standard approaches. As such, thorough planning and strong change management is essential, requiring buy-in from a variety of teams within an organisation – finance, tax, real estate, procurement, leasing divisions, risk modelling and IT to name some of the most obvious.