The final countdown to IFRS 16 leases
There are only a few months before financial companies begin to report leases under a new reporting rule – IFRS 16 – that requires listed companies to put most of their leases on their balance sheet as an asset and corresponding liability. Nick Huber reports.
Summer is always a busy time in the financial reporting calendar. This year, it will be busier than usual for firms and auditors because of a new rule that changes how companies account for the cost of renting their premises and other assets.
IFRS 16 requires listed companies to put most of their leases on their balance sheet as an asset and corresponding liability, rather than an operating cost in the profit and loss account under the old rule. This will have a big effect on company profits and valuations, experts say.