ey-leases-a-summary-of-ifrs-16-and-its-effects-may-2016

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Design, implementation and transition Implementing the new standard will require companies to determine when to transition. Companies may decide to early adopt the leases standard to align with the transition to the new revenue recognition standard. Once the transition decisions are made and there is a clear understanding of what changes will be necessary based on current state diagnostics, companies can then design the implementation and transition plan. Preparing for an accounting change of this magnitude presents a considerable challenge. Understanding how the new standard will affect your company is critical. All companies with significant leasing activities should review the new standard and begin thinking about the implications now, as we believe that starting early is the best way to reduce the overall cost of implementation and to avoid unwanted surprises and costly mistakes. 24 Leases | A summary of IFRS 16 and its effects | May 2016
Contact us IFRS technical James Luke Director, Africa IFRS Leader Tel: +27 11 772 3767 Email: james.luke@za.ey.com Dennis Deysel Associate Director, Assurance Professional Practice Group Tel: +27 11 772 4943 Email: dennis.deysel@za.ey.com Larrisa Clark Director, Assurance Professional Practice Group Tel: +27 11 772 3094 Email: larrisa.clark@za.ey.com Marieke Fourie Manager, Assurance Professional Practice Group Tel:+27 11 772 3917 Email: marieke.fourie@za.ey.com Financial Accounting Advisory Services Khaya K Dludla Director, Financial Accounting Advisory Services Tel: +27 11 772 3562 Email: khaya.dludla@za.ey.com Nelly Shiluvana Director, Financial Accounting Advisory Services Tel: +27 11 772 3353 Email: nelly.shiluvana@za.ey.com Nigeria Zimbabwe Jamiu Olakisan Partner, Financial Accounting Advisory Services Tel: +234 1 6314 500 Email: jamiu.olakisan@ng.ey.com Tinei Muwandi Senior Manager, Assurance Professional Practice Group Tel: +263 475 090 514 Email: tinei.muwandi@zw.ey.com Samuel Agbevem Partner, Financial Accounting Advisory Services Tel: +234 1 4630 479-80 Ext: 129 Email: samuel.agbevem@ng.ey.com Fredrick C Macharia Senior Manager, Assurance Professional Practice Group Tel: +254 202 715 300 Email: frederick.c.macharia@ke.ey.com Kenya Leases | A summary of IFRS 16 and its effects | May 2016 25
Page 1 and 2: Leases A summary of IFRS 16 and its
Page 3 and 4: Lessee accounting - Recognition and
Page 5 and 6: IFRS 16 requires lessees to recogni
Page 7 and 8: Impact of the adoption of IFRS 16 I
Page 9 and 10: Metals and mining entities will nee
Page 11 and 12: Financial statement impact - Before
Page 13 and 14: Identifying and separating lease an
Page 15 and 16: Factors that impact the complexity
Page 17 and 18: Transition The new standard is effe
Page 19 and 20: Data collection and ongoing data ma
Page 21 and 22: certain of being exercised. As such
Page 23: How should companies prepare? Educa
Page 27 and 28: Leases | A summary of IFRS 16 and i

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