KPMG ISG’s First Impressions: IFRS 16 Leases summarizes the key requirements of IFRS 16, Leases, which requires most lessees to present right-of-use assets and lease liabilities on-balance sheet, and eliminates the current dual lease accounting model for lessees. The publication highlights areas of the new standard that may result in a change in practice, features KPMG insights about the new lease accounting requirements, and includes illustrative examples to help an entity assess the effects of IFRS 16 on its business.
IFRS 16 is effective for entities that apply IFRS for annual periods beginning on or after January 1, 2019. Earlier application is permitted for entities that apply IFRS 15, Revenue from Contracts with Customers, at or before the date of initial application of IFRS 16.
KPMG’s ISG also recently published a Web article and a SlideShare presentation, to help interested parties understand the requirements of the new standard, and the possible effects on an entity’s business. A PDF version of the presentation also is available.
The FASB is expected to issue its new leases standard in February.