IFRS 16 in short
IFRS stands for International Financial Reporting Standards. This is a financial standard for yearly reports of businesses. As of 2019 the IFRS 16 regulation will become effective. This means that operational lease agreements have to be stated on balance sheets. This eliminates the administrative difference between financial lease and operational lease.
To whom does IFRS 16 apply?
Listed companies in the EU have been obligated since 2005 to report according to IFRS regulation. Companies can also volunteer to report according to this standard. As of 2019 these companies have to recognise their operational lease agreements on their balance sheets, in line with IFRS 16.
To which lease agreements does IFRS 16 apply?
As of 2019 operational lease agreements have to be recognised on balance sheets. This applies to all operational lease agreements with an end date after January 1, 2019.
How we help
The new IFRS 16 regulation will be effective by the end of January 2019. However, you will require financial data from 2018 to compare results. To enable you to comply with IFRS 16 regulation, you can apply for an IFRS account. You will get access to your contract data for your IFRS reports via myAthlon.