Are you ready for new lease reporting?

From January 2019, all leased assets, including those covering property, are required to be reported differently in financial statements. Coming into effect for the beginning of next year, this means that financial planning and budgeting for the financial year commencing in July 2018 will need to change.

The Australian Accounting Standards Board (AASB) has adopted the International Financial Reporting Standards – IFRS 16, designed to increase the transparency of lease reporting.

Dependent on the nature of the business and their leased property portfolio details, this will likely have a significant impact on annual financial statements, with off-balance sheet operating leases now recognised on the balance sheet as assets and liabilities.

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