Most accountants are on top of the big picture story of AASB 16 - no more operating leases, right to use asset on the balance sheet, a lease liability will be recorded on the balance sheet, no more rent expense, EBITDA will improve, etc. - but very few accountants have thought beyond the high-level impacts and come to terms with the practicalities of:
- Calculating the lease liability
- Calculating the ROU asset
- Remeasuring the lease liability and ROU asset
- Handling transition
- What to do with legacy onerous lease liabilities
- What to do with legacy lease liabilities and assets
- Transition options.
With transition fast approaching it is time that accounts move from the high level theory to a comprehensive understanding of how to apply the standard.
This hands-on masterclass, run by BDO IFRS Advisory experts Wayne Basford and Susan Oldmeadow-Hall will assist you in preparing for transition by taking you through a practical case study, including working through the transition requirements of the standard and calculation of the lease liability and ROU asset.
The new lease accounting model will change key financial metrics and KPIs and introduce volatility to the balance sheet and profit or loss due to continual re-measurement requirements.