The release of AASB 16 Leases drastically changes the accounting for leases. The headline summary of the standard being, “no more operating leases “ and “all leases come on a balance sheet”. Whilst, the obvious increase in debt on a company’s balance sheet can be viewed as a negative message to readers of a financial report, the standard does result in improved EBITDA and improved operating cashflows.
Accountants should not think that adoption will be a simple process, the standard will involve a great deal of judgement, particularly in determining what represents a lease under AASB 16, how to calculate the lease liability and more.
With the standard being mandatory a year after AASB 9 and AASB 15, some accountants may view AASB 16 as something that can be put on the backburner. However, BDO urges preparers to consider whether they want to create a stable platform and adopt the standard a year earlier which will result in not having an overwhelmingly fast change.
Key areas covered during the seminar include:
- Overview of the new standard
- Issues in determining what is a lease under AASB 16
- Practical implementation issues
- Leases of property
- Leases of infrastructure
- Transport contracts
- Leases of heavy equipment
- Leases of low value items
- Impact on reported performance
- Balance sheet
- Cashflow statement
- Transition options
IFRS Leader Asia Pacific
Wayne is an Audit & Assurance Partner with BDO in Perth. Wayne is highly qualified and experienced in delivering both technical expertise and thought leadership to a national and international audience.
Wayne has over 25 years’ experience in audit and advisory services. He has worked with major global accountancy firms across three continents, developing extensive experience with large, multinational audits (particularly cross border listings in China). Wayne is a specialist in International Financial Reporting Standards (IFRS). He regularly authors technical papers and newsletters on application of IFRS and Auditing Standards, as well as consulting on application of IFRS and corporate governance.
Wayne joined BDO WA as a Partner in 2012. Prior to BDO, he held positions in a number of accounting firms, including the Big 4. Wayne holds several leadership positions within the local, regional and international firm. He is IFRS leader for BDO’s Asia Pacific region, Chairman of BDO International’s IFRS working party, head of BDO WA’s professional training division ‘Insite’, and head of BDO WA’s Technical Services Group.