Who is impacted by ifrs

Since the adoption of IFRS 16, this is no longer necessary as these companies can present net debt from the balance sheet which includes lease liabilities. Overall, the survey suggests that companies most affected by the implementation of IFRS 16 have communicated to investors the impact of the first-time adoption of the standard with transparency and have provided additional management commentary where necessary to explain any changes.

Finance leaders are under pressure to deliver more reporting more quickly in an environment of technological change, increased regulatory change and increased scrutiny. EY can support clients in this ever-changing landscape. Adoption of the IFRS 16 accounting standard for leases is starting to impact balance sheets for companies that choose to lease rather than buy assets. As a result, almost all leases are on the balance sheet. The EY survey shows that companies in the air travel, retail and transportation sectors have been most affected and are facing implications in terms of the financial statements, management commentary and use of alternative performance measures.

EY is a global leader in assurance, consulting, strategy and transactions, and tax services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders.

In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. For more information about our organization, please visit ey. This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax, or other professional advice. Please refer to your advisors for specific advice. In addition to cookies that are strictly necessary to operate this website, we use the following types of cookies to improve your experience and our services: Functional cookies to enhance your experience e.

You may withdraw your consent to cookies at any time once you have entered the website through a link in the privacy policy, which you can find at the bottom of each page on the website. Customize cookies. Skip to the content. EY Homepage. Recent searches.

Lessors should also remain alert as lessees may wish to renegotiate lease terms and structure future leases differently. In reality, nothing has changed: the affected companies have always held these lease commitments. However, the commitments will now be reflected on the balance sheet for all to see. Based on our interaction with market participants in , many companies are still struggling with implementation or are just starting to understand how they will be affected.

For most, the standard is already effective and has real consequences on finance and operations — are you sure you are ready? The details behind IFRS 16 are complex and must be carefully implemented and clearly explained in company financial reports throughout To learn more about TMF Group and our services, talk to us. About us Services Locations News and insights Careers. Make an enquiry. Executive committee The executive committee at TMF Group is made up of ten senior leaders in their fields.

Accounting and tax services Accounting and tax services Accounting and tax consultancy services ERP localisation International accounting and reporting International finance and accounting transformation Insurance Premium Tax IPT International tax services. IP licensing and collection. Estate and Inheritance planning services Family business ownership and succession planning services Services for High Net Worth Individuals Investment portfolio monitoring services Trustee services.

Fund services Real estate services Private equity services Private debt services Infrastructure services Venture capital services. News and insights. News and Insights Keep on top of the latest from around the world. Current vacancies Ready for a global career?

View our current vacancies. Article 4 minute read. Learn more » Lifecycle Automation Automate at every stage to save the most. Learn more » LeaseAccelerator Compliance Edition Enterprise lease accounting for long-term compliance. Learn more » EZLease Simple, fast, easy compliance. Learn more » Real Estate Manager Real estate lease administration integrated with compliance Learn more » Global Lease Marketplace Get the lowest finance costs for your leases. Learn more » Integration Fabric Integrate with every critical business system.