8 Post-Implementation Lessons From IFRS 16
For corporate organisations, IFRS 16 was effective for annual reporting periods beginning on or after 1 January 2019. In New Zealand, the new soon to be adopted IPSAS 43 standard for public benefit entities replaces the related IFRIC and SIC interpretations.
The introduction of IPSAS 43 requires lessees to account for their leases under a single accounting treatment, bringing almost all leases ‘on balance sheet’ and recognises a right of use asset and an associated lease liability. These changes will have a significant impact on organisations that utilise leasing as a form of asset financing and provides greater transparency of an organisation’s lease obligations.
Within this guide, we explore the lessons learned, obstacles encountered, and benefits gained by private sector organisations in their transition to IFRS 16.
