IFRS 16 Compliance
IFRS 16 Overview
IFRS 16 is the new lease accounting standard from the The International Accounting Standards Board (IASB). IFRS 16 replaces IAS 17 as the new standard that all companies who operate under IFRS must adhere by.
What does it mean for my business?
IFRS 16 changes the way you have to account for leases in financial disclosures—including balance sheets and income statements. Contracts that may not have been considered a lease in the original IAS 17 compliance standard, may now be a lease under IFRS 16 (and must be added to the balance sheet).
What is IFRS 16 compliance?
It’s mission-critical to invest in lease accounting software for IFRS 16 compliance that accurately recognizes leases as ‘right-of-use’ assets. To stay on the right side of the law when it comes to audit, you’ll need to ensure that leases correspond with their respective liabilities on the balance sheet.