From 1 January 2019, the new regulatory framework for leases (IFRS 16) will apply. This will require that comparable figures for the previous year are shown. Businesses should therefore have in place a system which meets the new requirements. The Leasing Module in Escali Financials fulfills the requirements.
Webinar IFRS 16 Leasing
We warmly welcome you to our free Webinar regarding IFRS 16 Leasing for English speaking audience 12. september 2018.
The first part includes a review of the IFRS 16 regulations and the second part a briefly demo of the Leasing module in Escali Financials.
Date: Wednesday 12. september 2018 (1:00 PM - 2:45 PM CEST)
Part 1: A review of the IFRS 16 regulations
Part 2: Demo of the Leasing-module in Escali Financials
Sign-up for the free webinar with your name and email to firstname.lastname@example.org
Accounting for leases (IFRS 16)
From 1 January 2019, a new regulatory framework for leases (IFRS 16) will apply. This will requirethat comparable figures for the previous year are shown. Businesses should therefore have in place a system which meets the new requirements by 1 January 2018.
The main feature of the new IFRS regulations is that the distincition between operational and Financial leases disappers. All leases must be included in the balance sheet statement. This means that the lease obligation is recongnized as a liability in the balance sheet, with a corresponding “Right to use” the lease on the asset side of the balance sheet.
The value of the lease obligation under IFRS 16 is based on the present value of future cash flows. The lease amount should be divided into an interest and an installment part. The “Right to use” on the asset side should be written-down according the corresponding regulations on other fixed assets.
In principle this will mean that leases appear both in the balance sheet and the P&L account in the same way as assets funded by loans.
The disctinction between financial and operational leases continues to apply to companies that use certain other Accounting Standards.
Main features in the Leasing Module
Download Our brochure here: Escali Financials - Leasing module brochure 2018 - low quality.pdf