IFRS 16 - The new accounting for Leasing in the 2019 financial statements
The recent introduction of the new IFRS 16 for the accounting of financial and operational leasing contracts, it will oblige companies to include the debt for LEASING in the balance sheet liabilities and the assets connected to it in the Assets. All other conditions being equal, we will have financial statements that are more representative of the real Financial Position of the companies which will include the debt for Leasing, until now relegated to the maze of the Explanatory Notes. The operating margins, EBITDA and EBIT will discount a fictitious improvement, due to the unbundling of the interests that will go into the Financial Management. For operators who have always adjusted the Statutory Financial Statements, including LEASING, nothing changes, while for the others there could be unexpected effects, not always welcome.
Robert Brioschi - Chartered Accountant Partner of CGP Law and Tax Firm
Andrea Honors - Chartered Accountant, Auditor and Trainer - Studio Direco
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