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IFRS16: A New Standard for Lease Accounting

In January 2016, the IASB (International Accounting Standards Board) issued IFRS 16 Leases. IFRS 16 sets out the principles for recognition, measurement, presentation and disclosures of leases. It replaces the previous standard IAS 17 and will become mandatory from 2019. This is the conclusion of a major project started in 2005 jointly with the US Financial Accounting Standards Board (FASB).

A document is now available for SAP(R) Financial Consolidation starter kit for IFRS users to help them consider the transition to IFRS 16. This document firstly presents the main changes introduced by IFRS 16, including a comparison with the forthcoming US standard. It then proposes a first analysis of the expected impacts on both companies’ financial statements and the SAP Financial Consolidation starter kit for IFRS.

The comprehensive document can be consulted here.

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