How will AASB 16 / NZ IFRS 16 affect Lease Accounting?

From 1st January 2019, AASB 16 / NZ IFRS 16 will supersede AASB 117 / NZ IAS 17, meaning that operating leases as well as finance leases must be accounted for on the balance sheet. This will have a huge impact on the accounting processes of any organisation that leases in assets. Therefore, it is expected that a high number of companies will be affected.

According to a recent poll, less than 5% of organisations have a dedicated lease accounting system in place, so now is the time to start reviewing your processes.

Here are some steps you can take in preparation for AASB 16 / NZ IFRS 16:

AASB 16 digram