IFRS 16 Leases

The IFRS Master Class provides training in the background, scope and principles under IFRS 16 Leases, and the application of this standard. You will learn about how to identify whether a contract is within the scope of the standard and the key principles of lease accounting. The course will further go deeper into the key principles of lease accounting and learn about areas of potential judgment in applying IFRS 16 Leases.

The new standard will have an impact on all organisations, particularly those with major assets under operating leases. This course is designed to bring delegates up to date with this standard for lease accounting, and is therefore suitable for delegates with existing knowledge of the current lease accounting standard under IFRS (IAS 17 – Leases).

This training course will look in more depth at practical application of IFRS in many industry sectors. Finally, this programme acts as an update and looks at recently released standards that will impact in future periods and looks at current IASB projects. It has been specifically created for those in accounting, reporting and/or controlling area within accounting and finance.

For existing finance leases, the standard will also bring changes, and increase the accounting complexity. Owing to the number of assumptions and estimates required by IFRS 16 Leases, ongoing annual maintenance of the accounting numbers will be significantly increased, especially for entities that have lease extension/termination options or variable lease payments.

How will companies identify all their leases and gather the data required to calculate the necessary adjustments on transition? Will the standard change decisions to buy rather than lease? These questions will be addressed as part of a detailed analysis of the requirements, using exercises and examples to enhance understanding.

TARGET COMPETENCIES

As a result of completing this course, all participants will improve their knowledge, understanding and analytical skills of IFRS 16 in particular and full IFRS in general, with the following benefits:

• Identify what are the steps to be further taken to get ready on time for the challenges and opportunities brought IFRS 16​
• Explain the fundamental requirements of IFRS 16 including key changes from IAS 17.​
• Understanding the newly issued standards, particularly IFRS 16 along with IASB projects, and how they will impact on the financial statements •Understand the new business perspective and the main changes brought by the new Standard IFRS 16​
• Identify the common challenges and pitfalls when applying the requirements of IFRS 16
• Explore the frequently asked questions raised by companies and auditors regarding implementation to date.​
• Explain key disclosure and transition requirements.​
• Use relevant case studies and scenarios to understand how the requirements should be applied and how it is likely to affect you.​
• Identify commercial arrangements in interpreting criteria such ‘definition of a lease’, ‘identified asset’ and ‘lease term’ and the impact on accounting outcomes.​
• Identify the risks in a lease portfolio, areas of potential cost savings and lease portfolio optimisation.

WHO SHOULD ATTEND ?​

This well-researched course will benefit executives who are responsible for the finance and accounting functions in their organisation.​

• ​Finance Directors​
• Head of Finance​
• Chief Finance Officers​
• Accounts Managers​
• Accountants​
• Auditors​
• Analysts​

Organisations consider this course as a great opportunity to train their young officers in the complexities of accounting in the industry.

COURSE OUTLINE

This IFRS Training comprehensive accounting standards training course will enable each participant to appreciate and understand the basics and certain complexities associated with international accounting standards along with topic terminology, concepts and applications. In gaining a perspective of the origins of IFRS, the accomplishments, to date, in the development and acceptance of global accounting standards and insights into the foreseeable future, participants will gain a valuable understanding of this critical field of knowledge and be capable of contributing meaningful assistance to their respective organisations with respect to the adoption and utilisation of these accounting standards.​

​ Conceptualization and Introduction to Lease Accounting in IFRS 16​

• Objective and Scope of IFRS 16​
• Objective and scope of IFRS 16​
• The latest on world adoption of IFRS​
• Recognition exemptions​

​What is a lease?​

• Determining whether an arrangement contains a lease​
• Identifying and separating lease and non-lease components of a contract and allocating contract consideration​
• Contract combinations​

​Key Concepts​

• Inception of a contract​
• Commencement date of the lease​
• Lessee involvement with the underlying asset before the commencement date​
• Lease term and purchase option​
• Lease payments​
• Discount rates​
• Initial direct costs​
• Economic life​
• Fair value ​

Lessee Accounting​

• Initial recognition​
• Initial measurement​
• Subsequent measurement​
• Remeasurement of lease liabilities​
• Lease modifications​
• Other lessee matters​

​Presentation ​

• Disclosure​
• Lessor accounting​
• Lease classification​
• Key concepts applied by lessor ​
• Finance leases​
• Operating leasings per Share
• ease modifications​

​Other lessor matters​

​Presentation​​

Disclosure​

​Advance Application of IFRS in an Institution ​

• Intermediate and Advanced lessor accounting​
• Sub-lessee accounting​
• Presentation ​
• Disclosure Sale and leaseback transactions​
• Determining whether the transfer of an asset is a sale​
• Transactions in which the transfer of an asset is a sale​
• Transactions in which the transfer of an asset is not a sale​

​Disclosure​

• ​Business combinations​
• Acquiree in a business combination is a lessee​
• Acquiree in a business combination is a lessor​

Effective date and transition​

• Effective date​
• Transition​
• lessee transition​
• Lessors ​
• Other considerations​
• Disclosure

VENUE:

Choice between  in-house / External Venue/ Live Online Classroom

Do you have more people interested in attending this course? Do you want to tailor it to meet your company’s exact requirements? If you’d like to do either of these, we can bring this course to your company’s office. You could even save more on the cost of sending delegates to a public course and dramatically increase your ROI.

If you want to run this course at a location convenient to you or if you want a completely customized learning solution, we can help.

We produce learning solutions that are completely unique to your business. We’ll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

DURATION:

2 days

COST:

ZAR 15,999.00

Contact us for our pricing for self-funded individuals

Contact us today