IFRS 16: reporting leases – complex issues

This training course is suitable for you if you understand the basic principles of reporting lease contracts under IFRS but are looking for answers to specific questions, such as:

• What to do if the company's plans concerning a leased property have changed?
• How to determine the discount rate? Can it be the same for all companies within the group?
• Is this contract a lease? Does an outsourcing contract include a lease component?
• What to do if a contract has been concluded for an indefinite period?
• What to do if an amendment to the lease contract has been concluded (change in the lease term, change in the leased property)?
• How to deal with your company having sold assets and then leased them back?
• What information about leases should be disclosed in the financial statements?

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

• Determining a lease term for leases concluded for indefinite period
• Determining discount rate
• Examples: effects of changes in estimates
• Examples: effects of changes in contracts
• Example: sale and subsequent lease back
• Lease – definition and risks of outsourcing contracts
• Reporting – what needs to be disclosed

Benefits

After attending the course, you will be able to:

• Predict the effect of concluding or amending lease contracts with specific conditions on the company’s financial statements
• Know how to reflect changes to leases or their conditions in the company’s accounts/financial statements