Alphabet App

Legal notice

Privacy Policy

Cookies

Imprint

Find us on linkedin

Find us on facebook

Find us on youtube

Find us on instagram

IFRS 16 | Alphabet.com

While for the lessor current lease accounting principles stayed broadly unchanged, the lessee was affected by significant changes. The lessee (= the company who leases an asset) now has to account for a right-of-use asset out of a lease contract on his balance sheet.

This basically means that he has to take the financial components of the lease, represented in the finance component of the monthly rental, on his books (as asset and liability). In technical terms, he will have to depreciate the asset, amortise the lease liability and account for the interest on the lease liability.

The costs for the services combined with the lease are not to be accounted for as an asset and only impact profit and loss statements on a monthly basis similar as under current accounting standard.
(Exceptions to the new rule are small ticket leases (<= 5,000 USD) and short term leases (< 12 months)) suppliers.

IFRS 16

Please enter the password you have received from Alphabet.

This page is password-secured