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IFRS 15 – Revenue from contracts with customers Presentation by: CPA Freda Mitambo Partner, Deloitte & Touche Uphold public interest

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  • IFRS 15 Revenue from contracts with customers

    Presentation by:CPA Freda Mitambo

    Partner, Deloitte & Touche

    Uphold public interest

  • Why IFRS 15 is important

    2

    What does it mean for clients?

    Revenue recognition principles will change

    P/L may vary to a certain extent

    IT Systems, Accounting Policies, Internal Processes and Controls may be subject to change

    What do I need to know now?

    Key challenges

    New estimates & judgments required

    Retrospective application includes associated data gathering analysis

    Change of systems, processes and internal controls

    Key advisory opportunities

    Training services, consulting on IT systems, tax planning and more

    What is it?

    More detailed guidance on revenue recognition which involve significant judgments

    Effective on 1/1/2018 with retrospective application

    What does it mean for auditors?

    Identify the key impacts on your clients

    Early discussion with clients on the key impacts and help your clients prepare for the changes

    Clients

    Ch

    alle

    ng

    e/

    Op

    po

    rtu

    nity

    Auditors

    Key fa

    cts

    IFRS 15

  • 3

    The Time is Now!

    1 January 2017

    Date of initial application

    1 January 2018

    First annual financial statements in

    accordance with IFRS 15

    31 Dec 2018

  • 4

    STEP 1 Identify the contract with the customer

    Five-step Model Framework

    Paragraph 9 lists the criteria which must all be met to qualify as a contract with a customer

    Entities will need to consider whether the contract should be combined with other contracts for accounting purposes

  • 5

    Step 1 Identify the contract with a customer

    A legally enforceable contract (incl. oral or implied) must meet all of the

    following requirements:

    A contract is outside the scope if:

    Contracts are approved and the

    parties are committed to perform.

    Payment terms can be identified.

    It is probable that the entity will

    collect the consideration to

    which it will be entitled.

    Each partys rights can be

    identified.

    Commercial substance.

    The contract is wholly unperformed and Each party can unilaterally terminate the

    contract without compensation

  • 6

    Five-step Model Framework

    An entity will typically identify all the distinct goods or services, or contract deliverables, which have been promised. They may be implicitly or explicitly promised in a contract these are performance obligations

    A good or service promised is distinct, if the good or service is capable of being distinct and the promise to transfer the good or service is distinct within the context of the contract.

    STEP 2 Identify the performance obligations in the contract

  • Identify all (incl. implicit) promised goods/services in the contract

    Step 2: Identifying performance obligations

    Is the good/service distinct?

    Can the customer benefit from the good or service on

    its own or together with other readily available

    resources?

    Is the good or service separately identifiable from

    other promises in the contract?

    Account for as a separate performance obligation

    Combine two or more promised goods or services

    YES NO

    CAPABLE OF BEING

    DISTINCT

    DISTINCT IN CONTEXT

    OF CONTRACT

    Step 1 Step 2 Step 3 Step 4 Step 5

    AND

    7

  • 8

    Five-step Model Framework

    IFRS 15 typically bases revenue on the amount to which an entity expects to be entitled rather than the amount that it expects ultimately to collect (includes both fixed andvariable consideration)

    Variable consideration will only be included in the transaction price to the extent that an entity expects it to be highly probable that the resolution of the associated uncertainty would not result in a significant revenue reversal (the constraint)

    STEP 3 Determine the transaction price

  • Transaction price

    The transaction price would

    not be reduced for the

    effects of customer credit

    risk.

    Excluding credit risk

    Variable considerationConsideration amount to which an entity

    expects to be entitled in exchange for

    transferring promised goods or services to

    a customer.

    Definition

    The amount is fixed and not

    contingent on the outcome of

    future events.

    Fixed consideration

    Consideration in a form other than

    cash

    Shall be measured at FV

    Non-cash consideration

    Significant benefit of financing

    Estimated and

    potentially constrained

    e.g., discounts, rebates,

    refunds, etc.

    Step 3: Determining the transaction priceStep 1 Step 2 Step 3 Step 4 Step 5

    What is the transaction price? What does it include?

    Consideration payable

    to customers

    If identified, leads to adjustment in

    transaction price.

    Practical expedient available.

    Reduces transaction

    price unless payment is

    made for a distinct

    good/service.

  • 10

    Five-step Model Framework

    After determining the transaction price at Step 3, Step 4 specifies how that transaction price is allocated between the different performance obligations identified in Step 2.

    Previously, IFRSs included very little in the way of requirements on this topic, whereas IFRS 15 is reasonably prescriptive.

    STEP 4 Allocate the transaction price to the performance obligations

  • Determine standalone selling

    price

    Estimate the price if unobservable

    Acceptable methods> Adjusted market assessment approach >Expected cost plus a margin approach >Residual approach

    Allocate the transaction price

    Allocate the transaction price to each performance obligation on a relative stand-alone selling price basis.

    Allocate discounts proportionally to all performance obligations unless certain criteria are met.

    Allocate variable consideration and changes in transaction price to all performance obligations unless two criteria are both met.

    Do not reallocate changes in standalone selling price after inception.

    Step 4: Allocating the transaction price Step 1 Step 2 Step 3 Step 4 Step 5

    Only allowed in limited circumstances

    Maximize the

    use of

    observable

    inputs and

    apply

    consistently

  • 12

    Five-step Model Framework

    The final step is to determine, for each performance obligation, when revenue should be recognized. This may be over time or at a point in time.

    Paragraph 35 outlines the criteria, of which one must be met, for revenue to be recognized over time.

    STEP 5 Recognize revenue when (or as) each performance obligation is satisfied

  • Step 5: Recognizing revenue

    The sellers performance creates or

    enhances an asset controlled by the

    customer.

    Performance satisfied over time = Revenue recognized over time

    The seller does not create an asset that has

    an alternative use to the seller and the seller has the right to be paid

    for performance to date.

    OR

    Revenue recognized at a point in time

    The customer simultaneously

    receives and consumes the benefit of the

    sellers performance as the seller performs.

    IF NOT

    Step 1 Step 2 Step 3 Step 4 Step 5

    OR

  • 14

    Audit Risk Assessment Transition Versus Ongoing

    Full retrospective

    method

    Modified retrospective

    method

    Risks relating to transition

    Risks relating to on-going application

  • Modified Contracts

    Completed contracts

    Completed contracts with variable consideration

    Transaction price allocated to remaining performance obligation

    Practicalexpedientsfor:

    Applies IFRS 15 retrospectively to all comparative periods presented. When chosen:

    Full Retrospective Method

    Prior yearcomparativesare restated

  • Practical Expedient:Modified contracts

    Only contracts that are open at the date of initial application

    Choose to apply the requirements to:

    Modified Retrospective Method

    All contracts at the date of initial application

    OR

  • S3 17

    When is an option to purchase additional goods recognized as a separate performance obligation (a

    material right) per IFRS 15?

    When the seller is obligated to provide the additional goods at the discretion of the customerAWhen the option allows the customer to purchase goods at a discount that is incremental to the range of discounts typically given for those goods to that class of customer in that geographical area or market

    B

    When the customer is more likely than not to exercise the optionCWhen the entity has historical data on the expected level of use of the

    optionD

    Testing your Knowledge: Question 1

  • S3 18

    When the seller is obligated to provide the additional goods at the discretion of the customerAWhen the option allows the customer to purchase goods at a discount that is incremental to the range of discounts typically given for those goods to that class of customer in that geographical area or market

    B

    When the customer is more likely than not to exercise the optionCWhen the entity has historical data on the expected level of use of the optionD

    Testing your Knowledge: Question 1

    When is an option to purchase additional goods recognized as a

    separate performance obligation (a material right) per IFRS 15?

  • S3 19

    Which of the following criteria must be met to capitalize the costs of fulfilling a contract in accordance with IFRS

    15 (assuming the costs are not within the scope of another standard)?

    The costs relate directly to a specifically identifiable contractA

    The costs generate or enhance resources that will be used in satisfying the contractB

    The costs are expected to be recoveredC

    The costs relate to satisfied performance obligations D

    Testing your Knowledge: Question 2

    Select all that apply

  • S3 20

    Which of the following criteria must be met to capitalize the costs of fulfilling a contract in accordance with IFRS

    15 (assuming the costs are not within the scope of another standard)?

    The costs relate directly to a specifically identifiable contractA

    The costs generate or enhance resources that will be used in satisfying the contractB

    The costs are expected to be recoveredC

    The costs relate to satisfied performance obligations D

    Testing your Knowledge: Question 2

    Select all that apply

  • S3 21

    How does IFRS 15 deal with variability that is linked to

    customer actions or choices?

    If a contract gives a customer the option to purchase additional distinct goods or services, those goods or services are not treated as performance obligations.

    Instead, consider whether customer option gives rise to a

    material right. If it does, the material right itself (and not

    underlying goods or services) should be treated as a

    performance obligation.

    Highlight - Case Study 1: Key Areas of Focus

  • S3 22

    Background

    Force manufactures and sells aircraft engines and parts.

    Unlike its competitors, Force does not build its engines or

    spare parts on a contract by contract basis. Force delivers

    within a 30-day timeframe and therefore has aircraft

    engines and spare parts on hand, ready for immediate

    delivery. Force frequently sells spare parts separately from

    the engines and vice versa.

    FlyJet is a commercial airline which travels internationally.

    Note: the below contract has been assessed as being

    within the scope of IFRS 15 and the assessment has been

    adequately documented in the audit file.

  • S3 23

    Contract

    Force has entered into a written contract with FlyJet to

    sell:

    10 aircraft engines for $12 million each (excl. sales

    tax) and

    20 specific aircraft engine spare parts (part XY002) for

    $300,000 each (excl. sales tax)

    The 10 engines will be delivered together before the

    end of December 2018. The 20 spare parts will be

    delivered together during January 2019.

    The 20 spare parts are for future replacement

    purposes, as and when needed. Additionally, in the

    contract, FlyJet has the option to buy additional XY002

    parts (beyond the 20) for the next 5 years. Other

    engine spare parts can also be purchased by FlyJet,

    however these would be purchased outside of this

    contract. The purchase of the optional spare parts is at

    the discretion of FlyJet, but Force is obligated to

    provide these optional spare parts if requested.

  • S3 24

    Contract

    FlyJet is not contractually bound to buy spare parts from

    Force and they are available from other suppliers.

    However, many countries require airlines to use engine

    spare parts from the original equipment manufacturer

    when flying in that countrys air space. Based on its

    airline routes, in practice, FlyJet is compelled to buy

    engine spare parts from Force. These spare parts are

    needed for the aircraft engine to properly function for its

    expected economic life.

    Force deliberately prices the aircraft engines at less than

    the cost of manufacture, knowing that they will earn a

    very high margin on part XY002 (based on an estimated

    average number of spare parts to be sold, as well as the

    number of spare parts sold upfront) to recoup the initial

    loss on the engine. If no optional additional spare parts

    were purchased, the contract would incur a loss. This

    pricing structure is known in the industry as a loss leader

    contract.

  • S3 25

    Contract

    The standalone price of the aircraft engine is $20

    million each. When Force sells the aircraft engines

    by themselves (without the spare parts), the aircraft

    engines are sold at a profit. The spare parts are not

    sold at a discount to their standalone selling price.

    Force estimates that a total of 75 optional spare parts

    will be purchased by FlyJet and that the profits on the

    spare part sales will more than compensate for the

    discount on the selling price of the aircraft engines.

    This is based on Forces historical statistical

    evidence of selling a large number of spare parts.

  • S3 26

    Highlight - Case Study 1: Guide 1 Background

    Force contracts with FlyJet to sell

    10 aircraft engines for $12 million each

    20 spare parts for $300,000 each

    FlyJet option to purchase additional specific spare parts

    Loss leader contract aircraft engines priced at less than the cost of manufacture, in anticipation of spare parts securing profits

    Estimated sale of 75 optional spare parts over 5 years

  • S3 27

    Highlight - Case Study 1: Guide 1 Solutions

    STEP 2 Identify the performance obligations in the contract

    STEP 3 Determine the transaction price

    STEP 4 Allocate the transaction price to the performance obligations

  • S3 28

    Highlight - Case Study 1: Step 2

    Is the good or service distinct within the context

    of the contract?

    IFRS 15.10 - A contract is an agreement between two or more parties that creates

    enforceable rights and obligations

    REMINDER

    Is the good or service capable of being distinct?

    Identify material(explicit and implicit)

    promised goods and services

  • S3 29

    Highlight - Case Study 1: Step 2

    Is the good or service distinct within the context

    of the contract?

    10 aircraft engines are

    capable of being distinct and

    distinct within context of

    contract; and

    20 spare parts are capable of

    being distinct and distinct

    within context of contract.

    Is the good or service capable of being distinct?

    Identify material(explicit and implicit)

    promised goods and services

  • S3 30

    Highlight - Case Study 1: Step 3

    IFRS 15.10 defines a contract as an agreement

    between two or more parties that creates enforceable

    rights and obligations

    Optional additional spare parts are not sold at discount to their stand-alone selling price. There is no material right to

    customer and option will not be accounted for as a performance obligation

    Forces assessment of optional additional spare parts as a separate performance obligation is incorrect

  • S3 31

    Highlight - Case Study 1: Step 3

    Optional goods or services that are distinct:

    Exclude from performance obligations

    Exclude associated amounts payable from transaction price

    Assess whether material right

    Variable goods or services that are not distinct:

    Include within performance obligation of which they form

    part

    Treat variable amounts payable by customer as variable

    consideration

  • S3 32

    Highlight - Case Study 1: Step 3

    The transaction price should only include amounts (including variable amounts)

    to which the entity has rights under the present contract.

    The transaction price is therefore $126 million:

    10 aircraft engines at $12 million each 20 spare parts at $300,000 each

  • S3 33

    Highlight - Case Study 1: Loss Incurred on Aircraft Engines

    An entity should recognize as expenses when incurred costs that relate to satisfied performance obligations (or partially satisfied performance obligations) in the contract

    REMINDER

    Full costs for sale of 10 aircraft engines and 20 spare parts should therefore

    be expensed upon sale

  • S3 34

    Highlight - Case Study 1: Step 2

    Should the optional additional spare parts expected to be sold be included within the

    performance obligations under the contract?

    Is the option to purchase the spare parts a material right?

  • S3 35

    Highlight - Case Study 1: Step 3

    Should the estimated sales of the optional spare parts be included in the transaction

    price as management proposes?

    If the estimated sales relating to the optional spare parts are not included as performance

    obligations in the original contract, how should the loss incurred on the aircraft

    engines be treated? Could this be capitalized or is it required to be expensed?

    Expensed

  • S3 36

    Engines

    Spare parts

    Total stand-alone selling price

    Engines

    Spare parts

    Transaction price

    Allocation of the transaction price to the performance obligations

    $200 million

    $6 million

    $206 million

    $122.3 million

    $3.7 million

    $126 million

    Highlight - Case Study 1: Step 4

  • 37

    Factors to Consider

    2017. For information, contact Deloitte Touche Tohmatsu Limited. S3 37

    Degree of judgment /

    objectivity in accounting

    process

    Accounting and reporting complexities

    Complexity / simplicity of

    related calculations

    Degree of complexity or

    judgment

    The complexity of transactions

    Size and composition

    of the ABCOTD

    Volume of activity,

    complexity, and whether homogenous

    Nature of the ABCOTD

    Effect of quantitative

    and qualitative

    factors

    Economic, accounting,

    or other developments

    Exposure to losses

    Changes from the

    prior period

    Susceptibility to

    misstatement due to error

    or fraud

    Transactions outside of

    normal course of business

    Risk of fraudExistence of Related Party Transactions

    Possibility of Significant Contingent liabilities

    Degree of automation /

    Manual intervention

    Degree of complexity and

    judgment

    Nature and composition of the

    ABCOTD

    Economic, internal and historic

    factors

  • Audit Considerations

    Factors to consider when identifying and assessing RoMMs

    Evaluate the clients risk assessment

    Management estimates

  • IFRS 16 - Leases

    Uphold public interest

  • Lessor accounting largely unchanged

    One single

    measurement

    model

    Determination of

    whether a

    contract contains

    or is a lease

    Two main changes are

    Lessor

    and

    Lessee

    Lessee

    What is the impact of IFRS 16 on clients?

    Introduction

  • 1 Jan 20191 Jan 2018

    December year-ends:

    Retrospective application

    with restatement

    Disclosure reasonably estimable information (up to effective date)

    December year-ends:

    Effective date

    Entities can elect to apply full retrospective approach or a modified retrospective approach (with no restatement of comparatives)

    31 Dec 2016

    Introduction

    Timeline to transition

    PRACTICAL EXPEDIENT

    Early adoption may

    be permitted

    Permits both lessees and lessors not to reassess whether a contract is, or contains a lease at the date of initial application.

  • Why now?

    Introduction

    Client impact and changes

    KEY CLIENT ADVICE

    Systems

    Processes

    Controls

    Metrics

  • Key accounting focus areas

    IFRS 16 versus IAS 17

    T

    e

    x

    t

    Focus on

    lessees

    Definition of

    a lease

    Measuring the

    lease liability

    All leases now on the

    statement of financial

    position

  • IFRS 16 versus IAS 17Identification of a lease

    IFRS 16 changesIFRS 16 retains

    Definition of a lease Application of the definition

    A contract, or part of a contract, that

    conveys the right to use an asset for

    a period of time in exchange for

    consideration.

    Concept of control is introduced

    Identifying a lease may require significant judgment

  • Definition of a leaseIFRS 16 versus IAS 17

    Is it a lease?

    Identified asset Right to control the use of

    identified asset

    and

    Right to obtain substantially all economic benefits from use

    Right to direct the use

    whether the customer has the right to control the use of an identified asset for a period of time.

  • IFRS 16 versus IAS 17Expected impact

    Treatment under IAS 17

    Expected conclusion under IFRS 16

    Contracts that are or contain a lease

    Generally, the same

    Significant judgment was applied

    Possibly different

  • IFRS 16 versus IAS 17

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    text it is not here

    to be read. This is

    dummy text it is

    not here to be

    read. This is

    dummy text it is

    not here to be

    read.

    2Leases

    recognized on

    statement of

    financial position

    Service contracts

    recognized on

    income statement

    Operating lease

    and service

    component both

    recognized on

    income statement

    IFRS

    16

    IAS

    17

    Non-lease

    component

    Identified and accounted for separately

    from the lease component

    Separating components

    PRACTICAL EXPEDIENT

    KEY CLIENT ADVICE

  • IFRS 16 versus IAS 17

    Income statement

    EBITDA XXXDepreciation XXXFinance cost XXX

    Profit before tax XXX

    Statement of Financial Position

    Lease assets XXX

    Lease liabilities XXX

    Income statement

    Lease payments XXX

    EBITDA XXX

    Profit before tax XXX

    Statement of Financial Position

    IAS 17 IFRS 16

    Obligation to

    make lease

    payments

    Right to use

    underlying leased

    asset

    Depreciation on

    lease assets and

    finance cost of

    lease liability

    Single measurement model

    Off-balance sheet

  • IFRS 16 versus IAS 17

    Total assets

    Total liabilities

    Significant impact on entities with material off-balance sheet leases.

    Impact on net assets

    42,000

    44,000

    46,000

    48,000

    50,000

    52,000

    54,000

    56,000

    Yr 1 Yr 2 Yr 3 Yr 4 Yr 5

    Statement of Profit or Loss and OCI

    IFRS 16 IAS 17

    Finance costs

    Operating costs

    EBITDA

    Expenses are weighted towards at start of lease term and decrease as the lease matures (straight-line depreciation).

    EBITDA increases regardless of the entitys lease portfolio.

  • IFRS 16 versus IAS 17 Areas of judgment

    Most significant areas of judgment

    Present value of

    expected payments at

    end of lease

    Lease

    liabilityPresent value of

    lease rentals

    Present value of future lease payments

    Discount rate Rate implicit in the lease Incremental borrowing rate

    Lease term

    Non-cancellable term of the lease +periods covered by an option to extend and the option to terminate the leases

    These concepts have

    not changed

  • IFRS 16 versus IAS 17

    The rate of interest that causes the PV of the lease payments and the

    unguaranteed residual value to equal the sum of the FV of the

    underlying asset and any initial direct costs of the lessor.

    The interest

    rate implicit in

    the lease

    Use the lessees incremental

    borrowing rate.

    If the implicit interest rate

    cannot be determined

    Determining the discount rate

    Revised discount rateAs a result of re-measurement of lease

    liability

    Discount rate at commencement

    date

    JUDGMENT

  • 2017. For information, contact Deloitte Touche Tohmatsu Limited.

    IFRS 16 versus IAS 17

    JUDGMENT

    Change in assessment of

    option to purchase

    Events to

    remeasurement

    Change in lease term

    Changes in future lease payments

    Change in residual value guarantee

    Re-measuring the lease liability

    A lessee shall determine the revised discount rate and shall remeasure the lease liability by

    discounting the revised lease payments

    NO LONGER possible to compute a lease amortization schedule and simply roll that schedule

    forward

  • Transition options

    IFRS 16 versus IAS 17

    A Apply a single discount rate to a portfolio of leases

    Leases ending within 12 months of the date of initial application

    Use hindsight in determining the lease term

    Cumulative catch-up approachFor leases previously identified as operating leases

    Lessees and lessors are permitted to grandfather assessments regarding whether a

    contract existing at the date of initial application contains a lease.

    Adjust the right of use asset by the amount of provision for onerous leases

    Exclude initial direct costs

    Full retrospective approachNo reliefs available

  • IFRS 16 transition implications

    22

  • Impacts on clients environment and audit risk assessment

    IFRS 16 transition implications

    Impact clients

    environmentKey accounting

    focus areas

    Impacts the audit risk

    assessment

    An effective risk assessment requires a deep understanding of the entity, its environment and its internal control.

    Clients decisions

  • Determining ROMMs

    IFRS 16 transition implications

    1

    2

    3

    Degree of complexity and judgment

    Nature and composition of the Account Balances, Classes of

    Transactions and Disclosures

    Economic, internal and historic factors

    To assess ROMMs auditors need to understand our clients, their environment, internal

    controls and their lease transaction process

  • Understanding the clients selection and application of accounting policies

    IFRS 16 transition implications

    Processes Systems

    MetricsControls

    Process changes may

    be required to capture

    the data necessary to

    comply with accounting

    and disclosure

    requirements

    Changes to systems

    and processes will result

    in clients revisiting their

    existing internal controls

    to determine whether

    they are still adequate

    Lessees may need to

    consider implementing a

    contract management

    module for leases

    This could impact debt

    covenants, tax balances

    and an entitys ability to

    pay dividends

  • Impact on processes

    IFRS 16 transition implications

    Business

    strategies

    may change2Update

    policies and

    manuals3

    Time and

    effort to

    gather data1

    Education to

    ensure policies

    and procedures

    are applied

    consistently4

    Update

    policies and

    manuals3

  • What could go wrong?

    IFRS 16 transition implications

    Not all lease

    contracts are

    captured and

    recorded

    (on-going

    application) 1

    A re-

    measurement in

    variable lease

    payments is not

    recorded2

    Incorrectly

    measuring the

    lease term3

  • IFRS 16 has more data requirements for calculation and disclosure purposes. Clients need to assess adequacy of current systems.

    Must ensure there is adequate time to allow for testing to avoid any last minute unforeseen problems

    May be circumstances that further complicate IT system requirements

    Systems need to be

    able to store and

    update the data on

    an ongoing basis

    Involvement of

    IT specialists

    Impact on systems

    IFRS 16 transition implications

  • What could go wrong?

    IFRS 16 transition implications

    Assessing

    susceptibility to

    misstatement

  • We need to determine if clients have processes to identify risks as a result of adopting IFRS 16 and whether appropriate controls are in place.

    Auditors

    Impact on controls

    IFRS 16 transition implications

  • What could go wrong?IFRS 16 transition implications

    Has the client designed and implemented new control

    activities?

    Evaluate the design and determine whether they have been implemented for control activities relevant to

    the audit

    Are there any control

    activities missing?

  • IFRS 16 transition implications

    Impact on metrics

    Metrics

    Consider

    management

    pressures

  • IFRS 16 transition implications

    What could go wrong?

    IFRS 16

    IAS 17

    EBITDA

    Management bias?

    What areas

    impacted?

  • IFRS 16 transition implications

    Other considerations on transition

    ROMMs may be a one-time risk on

    transition

    First time recognition may pose highest risk

    Do not underestimate the time and

    resources involved

  • 10 Key questions for management

    Getting your client ready

    3

    4

    5

    2

    1

    8

    9

    10

    7

    6

    Do you know what discount rates you will be using for your different leases?

    Do you know which transition reliefs are available, and whether you will apply any of them?

    Have you considered whether your leasing strategy requires revision?

    Have you considered the impact of the changes on financial results and position?

    Are systems and processes capable of monitoring leases and keeping track of the required ongoing assessments?

    How will you communicate the impact to affected stakeholders?

    Have you considered the potential use of IFRS 16s recognition exemptions and practical expedients?

    Have you planned when you will consider the tax impacts?

    Do you know which of the entitys contracts are, or contain, a lease?

    Are your systems and processes capturing all the required information?

  • Questions?