IFRS 16: reporting leases under IFRS – fundamentals

Using practical examples, the training course will show you the effects of concluding a lease contract and a potential price increase due to indexation on the lessee's statements (recognition of the right of use and its subsequent depreciation, recognition of a liability from lease contracts). We will provide a summary of the guidance for lessors (finance vs. operating lease) as well as of matters connected with sub-leases.
If you are interested in other issues related to the reporting of leases (indefinite-term contracts, amendments to lease contracts, sale and subsequent lease, determination of the discount rate), take a look at the follow-up training course, IFRS 16 – complex issues.

Who are the intended participants?

• Employees of companies that report to a group under IFRS or prepare financial statements under IFRS
• CFOs
• Accountants accounting for assets acquired in form of a lease
• Controlling employees preparing financial plans or interpreting results
• Managers who make decisions on the method of acquiring fixed assets and constructing lease contracts
• Anyone who needs to understand the logic of reporting leases under IFRS (investors, financial analysts, etc.)

Programme

• Lease regulations under IFRS 16: explanation of the main concepts, including the discount rate used and the determination of the lease term
• Lessee accounting under IFRS 16
• Lessor accounting under IFRS 16 (including sub-leases)
• Examples (entering into a contract, indexation for inflation clause)
• Differences in CAS and IFRS reporting with respect to lease reporting (EBITDA, indebtedness)

Benefits

During the course, you will:

• Understand the basic principles of reporting lease contracts under IFRS 16
• Become able to evaluate the potential effects of concluded lease contracts on the company's financial statements (indebtedness, EBITDA)
• Understand the difference compared with Czech accounting