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TECHNICAL PUBLICATIONS Insights into IFRS 16: Lease term

This article relates to the important topic of ‘Lease term’. Determining the correct lease term under IFRS 16 is significant. Firstly, the longer the lease term, the larger the lessee’s right-of-use asset and lease liability will be. Secondly, the length of the lease term determines whether a lease qualifies for the short-term lease exemption. Finally, IFRS 16 contains additional application guidance on how to deal with periods covered by options to extend or terminate a lease. While this detailed guidance can be helpful, it also means there is more to consider when determining the lease term. Our article explains the key aspects of determining the lease term at commencement date and when it should be reassessed.

Technical publications Example financial statements

Grant Thornton has prepared a number of example financial statements which have been tailored to suit a number of different scenarios.

Technical publications XYZ Model Financial Statements

XYZ has been New Zealand’s premier financial reporting publication for manyyears and Grant Thornton New Zealand has again edited and updated the publications for 2018.

Technical publications Insights into IFRS 16: Definition of a lease

NZ IFRS 16 changes the definition of a lease from the current evaluation in NZ IFRIC 4, and provides guidance on how to apply this new definition. As a result, some contracts that do not contain a lease today will meet the definition of a lease under NZ IFRS 16, and vice versa. This article explains the new lease definition and the three key evaluations necessary to determine that the contract is or contains a lease.

TECHNICAL PUBLICATIONS Insights into IFRS 16: Understanding the discount rate

This article considers the topical area of ‘Understanding the discount rate’. Under IFRS 16 ‘Leases’, discount rates are required to determine the present value of the lease payments used to measure a lessee’s lease liability. Discount rates are also used to determine lease classification for a lessor and to measure a lessor’s net investment in a lease.

Technical publications IFRS news

IFRS News provides insights about developments in International Financial Reporting Standards (IFRS).

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