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 […]

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 […]

Impairment of leases… think outside the box!

In my last article I discussed impairment considerations regarding the new IFRS standard—IFRS 16 Leases—and its implications for a lessee. In this article I would like to show you one more consideration regarding the impairment of leases which may not be so apparent at first glance. Additionally I’ll discuss the accounting treatment of an impairment of lea […]

How does impairment look under IFRS 16 Leases?

As we’ve seen over the last few months, IFRS 16 has brought about a lot of changes to the existing treatment of leases, especially for lessees. Probably everyone, even if not significantly affected by this accounting standard, remembers at least the most important change: in many cases the lessees will now have to recognize their operating lease on balance she […]