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:
- IFRS 16 Leases: a new standard
- Recognition and measurement exemption for the lessee
- How to account for leases
- Lessee accounting
- Initial measurement – lessee accounting
- Subsequent measurement – lessee accounting
- Lease modification – lessee accounting
- Presentation and disclosures for the lessee
- Lessor accounting
- Finance base – lessor accounting
- Operating base – lessor accounting
- Lease modification – lessor accounting
- Sales and leaseback transactions
- Transitions
This course consists of one online course and one online assessment.
Learning 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
- accounting administration
- management accounting
- financial accounting
