IFRS 16 – Lease Accounting

Course Details

IFRS 16 Leases radically changed the accounting for lease contracts by requiring lessees to recognise an asset and a liability for nearly all leases. This course aims to enable delegates to understand and apply the accounting and presentation requirements of IFRS 16 Leases.

This course provides comprehensive guidance on identification, recognition, measurement, presentation and disclosure requirements of lease accounting. We address both the lessee and lessor accounting models, and provide real-life examples and helpful illustrations to ensure proper understanding of the new requirements

It also helps by providing an in-depth look at IFRS 16, the new lease standard, which requires organizations to recognise lease assets and liabilities on the balance sheet and to disclose key information about lease arrangements.

Learning Outcomes:

On completion of this course, you will have a greater understanding of:

• How to identify contracts that are within the scope of IFRS 16 Leases
• How to prepare financial information in compliance with IFRS 16
• How to identify the information and systems required to properly apply the standard
• How to identify the nature, economic substance, and advantages of lease transactions
• How to apply the accounting for leases by lessees
• How to apply the accounting for leases by lessors
• Distinguish the accounting and reporting for special features of lease arrangements

Course Content:

Identification of leases

o    Definition

o    Separation of lease and non-lease components

The lessee model

o    Overview

o    Practical expedients

o    Initial measurement

o    Subsequent accounting

o    Lease modifications

o    Presentation

• Advantages of leasing
• Initial recognition, measurement and presentation of lease liabilities and lease assets
• Subsequent lease accounting
• Lease classification
• Sales-type and direct financing leases