EVENT DESCRIPTION

NOTE: This course description has been revised and reflects updates for 2021. If you have any questions, please contact pdevents@cpaontario.ca

SCHEDULE

  • Nov 10 @ 8:30 am to 12:30pm
  • Nov 11 @ 8:30 am to 12:30pm

Overview

The new lease standard under Part I – International Financial Reporting Standards (IFRS) 16 was effective for annual fiscal periods beginning on or after January 1, 2019. The impact was significant for all companies that had operating leases. The standard will have a significant impact on companies currently using ASPE that have decided to adopt IFRS. This seminar provides an in-depth review of the new standard, including the objective and scope of the standard, defined terms, exemptions and transitional requirements. Rent concessions due to Covid-19 are also discussed.

Course Description

This seminar provides participants with an in-depth review of the new lease standard. The entire standard will be covered however more emphasis is on the areas of change which focus on lessee accounting. The starting point will be identifying a lease and separating components of a contract. The lessee coverage will include the principles of recognition, measurement, presentation and disclosure. The likely costs and benefits of the new standard on the lessee will be discussed and the impact on a company’s financial statements and ratios. The lessor coverage will include the classification of leases as finance or operating and disclosure. The topic of sale and leaseback transactions will be reviewed. In addition, recent amendments due to rent concessions as a result of Covid-19 will be discussed.

Participants will have the opportunity to review a number of illustrative examples and exercises. In addition, to help address transitional and application issues the topics related to leases from the IFRS Discussion group and agenda decisions are reviewed. After attending this seminar, participants will have reviewed the objective and scope of the standard, defined terms, exemptions and transitional requirements.

Learning Objectives

By the end of this course, participants will be able to:

  • Explain the requirements of the new lease standard IFRS 16 for both lessee and lessor.
  • Review the likely costs and benefits of the new standard on the lessee and the impacts on the company’s financial statements and ratios.
  • Explain the impact of transition and required note disclosure.
  • Identify potential transitional and application issues.
  • Identify impact of rent concessions as a result of Covid-19
  • List relevant resources (with links).

Seminar Content

  • Overview of reasons for the change, and what has changed
  • Introduction to IFRS 16 - objective and scope, defined terms, exemptions, and effective date
  • Identifying a lease
  • separate components of a contract lessee and lessor

  • Lessee
  • recognition
  • measurement – initial and subsequent
  • presentation
  • disclosure

  • Lessor
  • classification of leases
  • finance leases
  • operating leases
  • subleases
  • disclosure

  • Sale and leaseback transactions
  • Transitional requirements
  • Impact of IFRS 16 on financial statements and ratios
  • Current developments

Applicable To

Practitioners, financial analysts, and controllers responsible for lease accounting; CPAs interested in understanding the implications of the new lease standard; and Audit committee members.