Grant Thornton “Insights into IFRS 16” is a publication designed to focus on key areas of the new Leasing Standard, which is effective for annual reporting periods beginning on or after 1 January 2019.
We have identified 7 key areas of IFRS 16 and through this publication we aim to assist you in the application of the Standard and get through several challenges arising from the new requirements.
This guide starts with the Definition of a lease under IFRS 16, while it serves as a roadmap for Understanding the discount rate’s determination, appropriateness and usage. It also aims to assist with the considerable judgement involved in Lease payments’ treatment and the determination of the appropriate Lease term. Additionally, this guide clarifies the new concepts and provides a simplified example of the requirements concerning the issue of Sale and leaseback. Finally, it demonstrates how to treat a variable lease payment in the financial statements of an Interim period and sets out the Transition choices and practical expedients that are available, while highlights some of their practical implications.