Download ifrs-16-leases PDF

Titleifrs-16-leases
TagsBalance Sheet International Financial Reporting Standards Financial Accounting Lease Generally Accepted Accounting Principles (United States)
File Size191.6 KB
Total Pages25
Document Text Contents
Page 1

© 2016 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

IFRS 16 Leases
A more transparent balance sheet

13 January 2016

kpmg.com/ifrs

Page 2

© 2016 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

“IFRS 16 will bring most leases on-balance
sheet from 2019. All companies that lease
assets for use in their business will see an
increase in reported assets and liabilities.

This will affect a wide variety of sectors, from
airlines that lease aircraft to retailers that lease
stores. The larger the lease portfolio, the
greater the impact on key reporting metrics.”

More transparent lease accounting

Kimber Bascom,

KPMG’s global IFRS
leasing standards leader

2

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© 2016 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Lease definition – Exemptions

Two major optional
exemptions make
the standard easier
to apply

Leases of low
value items

Short term
leases

≤ 12 months ≤ USD 5,000
for example

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© 2016 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Measuring the lease liability

Present value of
expected

payments at
end of lease

Present value of
lease rentals +=Lease liability

13

Page 24

© 2016 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

Next steps

Read the new
standard

Think about your
implementation

plan

Watch out for our
detailed analysis
at kpmg.com/ifrs

24

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© 2016 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG network of independent member
firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved.

© 2016 KPMG IFRG Limited, a UK company limited by guarantee and a member firm of the KPMG
network of independent member firms affiliated with KPMG International Cooperative (“KPMG
International”), a Swiss entity. All rights reserved.

The KPMG name and logo are registered trademarks or trademarks of KPMG International.

The information contained herein is of a general nature and is not intended to address the
circumstances of any particular individual or entity. Although we endeavour to provide accurate
and timely information, there can be no guarantee that such information is accurate as of the date
it is received or that it will continue to be accurate in the future. No one should act on such
information without appropriate professional advice after a thorough examination of the
particular situation.

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