AASB 16, effective from 1 January 2019, radically changes the way leases are recognised in financial statements. This standard ends the recognition of leases in the income statement and requires all leases to be recognised on the balance sheet. Clients and auditors alike have faced significant complexities as they begin to implement AASB 16 due to the problematic nature of some leases.
Recently we ran an AASB 16 update from Nexia Australia’s National Technical Director, Martin Olde, who is a member of the AASB's Income of Not-for-Profit Entities Project Advisory Panel and Conceptual Framework Project Advisory Panel.
What was covered:
The session covered a high level analysis of AASB 16 and includes some of the insights gathered, and technical advice delivered, on proactive implementation of AASB 16 with our clients. Martin also provided an update on changes to Peppercorn Leases and seek to simplify some of the complexities associated with reporting of leases.
If you are affected by AASB 16 we recommend you watch the below video, or download the slides to gain insights from real client experiences.
Session Materials
Lease accounting is no longer a set-and-forget proposition and requires regular reassessments and remeasurement throughout the lease term. Assessing lease renewal options, remeasurement of lease liabilities and assets, sub-leases and sale and leasebacks add further complexity.
Whether you have property, vehicles, office space or equipment, Nexia Australia can help reduce this financial reporting burden and can offer a complete solution to assist you with applying AASB 16 and managing your lease portfolio.
If you would like further information in regards to AASB 16, or for more details on our complete Lease Accounting Solution, please get in touch today.
