IFRS 16 Leases is effective from January 1, 2019 and is an important change for all industries and mining is no different, particularly given the significant use of capital equipment. The standard is designed to provide greater clarity to preparers and users of financial statements and will result in most leases being recognized on balance sheet. International standard setters have made changes to the identification, recognition and presentation of leases. Accordingly, a significant amount of additional detail and interpretation has been introduced. With this additional detail comes a need to fully understand the terms of existing and future contracts as the outcomes will differ based on the specific contractual arrangements. This guide includes many industry examples and practical considerations as the mining industry participants work through the industry interpretations and impacts.
Read the full KPMG in Mining: Practical Application Guidance report for more information.