Shining the Light on Leases
IFRS 16 will require leases to be carried on corporate balance sheets from January 2019
The new IFRS 16 Leases standard, replaces accounting standards (IAS 17) indroduced more than 30 years ago. As there are a lot of leases in the market, a major revision has been proposed to the way companies accounts for leases. Listed companies have trillion of them, of which more than 85% of them do not appear on Statements of Financial Position. IASB chair Hans Hoogervorst says that when IFRS 16 becomes effective in 2019 it will result in a substantial change to many companies Balance Sheet.