In this course you will cover the scope of the new lease standard IFRS 16, and the principles of lease accounting for both lessee and lessor.
Overview
This course will assist those who prepare and use financial statements to understand the impact of IFRS 16 Leases. This new standard was issued on January 2016 and is effective from 1 January 2019 (replacing IAS 17 Leases and the related Interpretations).
The new lease standard, IFRS 16 Leases, impacts lessee accounting quite significantly as a lessee will no longer be able to distinguish between finance lease contracts (on balance sheet) and operating lease contracts (off balance sheet).
For lessor accounting, the standard carries forward substantially the requirements in IAS 17. Accordingly, a lessor continues to classify leases as operating leases or finance leases, and to account for those two types of leases differently.
In this course, you will cover the scope of the new lease standard and the principles of lease accounting for both lessee and lessor.
Key topics:
- Introduction to IFRS 16 Leases: a new standard
- Recognition and measurement exemption for the lessee
- How to account for leases
- Measurement
- Lease modification – lessee accounting
- Presentation and disclosures for the lessee
- Lessor accounting
- Other considerations
This course consists of one interactive online course, one downloadable PDF learning manual and one online assessment.
Objectives
- Describe the definition of a lease contract and how to identify a lease contract.
- Exercise judgement in common areas of complexity in lease contracts for both lessees and lessors (such as determination of lease payments, lease terms, the appropriate discount rate, and the appropriate accounting treatment for these items).
- Explain the impact of lease modification, sale and leaseback and sublease transactions on the accounting treatment of the new leases.
- Apply the recognition and measurement requirement of IFRS for both lessee and lessor accounting.
Audience
This course is specifically designed for finance professionals who are involved in:
- external reporting
- financial management
- management accounting
- financial accounting