CSSF focus for 2020

Just before issuers and auditors started winding down for the festive season, the CSSF published its enforcement priorities for 2020. Recently issued IFRS 9, 15 and 16 were among the points at the top of the agenda – no surprises there, right?! Let’s take a look at what’s at the top of the CSSF’s agenda for the year ahead… IFRS 16 Lease The C […]

IFRS 16…is coming to town!

Still recovering from IFRS 15 and IFRS 9 implementation for 2018 year-end financial statements? Well, don’t relax just yet…It’s time to gear up for the latest challenge: IFRS 16. In its first mandatory year following ESMA’s annual statement on enforcement priorities in October, here’s what you need to know: Lease term Issuers are expected to provi […]

IFRS 15 for real estate companies: principal or agent?

In my last article, I provided an overview of the requirements for determining whether an entity is acting as a principal or an agent. I want now to look at this topic in more detail, and with a focus on the real estate sector—where it can be a considerable challenge. Rental contracts have a leasing component accounted for under IFRS 16 Leases, as well as ( […]

The CSSF’s new IFRS 16 questionnaire shakes the ground for banks

There have been numerous publications on how IFRS 16 Leases changes the accounting for leases and what the main challenges are. One would think that by now the hype around the new standard has settled, yet the circular letter issued by the CSSF recently seems to have caused anxiety among some Luxembourg’s credit institutions. The circular requests all credi […]

The company car accounting question: employee benefit or lease?

When the IASB published IFRS 16 Leases, I doubt they imagined the huge debate that would ensue over something as seemingly simple as a company car. It’s pretty easy to imagine writing pages about whether a contract meets the definition of a lease or whether a lease term should include the renewal or termination option, but the lease of a company car? It tur […]
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Survey finds companies unready for new leasing standards

The new standards on lease accounting are here. They became effective on 1 January 2019 for calendar year-end companies. However, KPMG’s survey of companies around the world reveals that some firms won’t have fully completed their implementation programs by the effective date, and will therefore be relying on interim solutions to enable compliance workaround […]