IFRS 16 requires companies to consider lease contracts of significant value and of a duration greater than 12 months, as if they were acquisitions for which the underlying asset’s value and corresponding debt needs to be evaluated. Companies will have to choose rates, probable asset utilization duration, impairment tests, and consider carefully the sub-lease and lease-back cases. Information thereby collected need to be traceable and auditable, and will have to be certified by auditors.
k-IFRS 16 from kShuttle is a simple solution that strengthens a business-oriented approach.
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