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IFRS for Corporates

IFRS for Corporates

The IFRS on leases is effective from January 2019. Are you ready for it?

The IFRS on leases is effective from January 2019. Are you ready for it?

One of the most challenging new standards, especially for corporate companies, has been IFRS 15 Revenue from Contracts with Customers, set to replace IAS 18 Revenue and IAS 11 Construction Contracts. Most corporate companies were highly affected by it, with the industries of telecom, engineering, construction, and software perhaps facing the biggest change.

IFRS 9 Financial Instruments brought fundamental changes to financial instrument accounting and replaced IAS 39 Financial Instruments: Recognition and Measurement. The standard introduced new criteria on how to classify a financial asset, and launched a new impairment model based on forward-looking information and on expected credit losses. It also introduced a new hedge accounting model aligned with risk management.

IFRS 16 Leases, which has been effective for annual periods beginning on or after 1 January 2019, requires recognition of most leases on the balance sheet. It changes the accounting treatment of leases by lessees substantially.

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