By Maryna Prodanovski, Audit Manager
The new AASB 16 Leases standard is now effective. It replaces IAS 17 Leases for reporting periods beginning on or after 1 January 2019. There have been several pronouncements released to address accounting for leases and it can be challenging determining what is current methodology and what is applicable for trading companies versus Not-for-Profit entities.
We have been assisting our clients with adoption of the AASB 16 Leases standard as well as with the ongoing accounting advice in relation to this standard. We have recently completed the accounting advice for one of our local peak sporting clients who prepare General Purpose Financial Statements. This client had leases with various terms and conditions including peppercorn leases. Depending on the type of lease, the accounting can vary significantly. We can review your lease contracts, determine the accounting treatment for each lease, and provide you with calculations and journal entries required.
This standard affects all entities with operating and finance leases. If you are not sure how the new leases standard impacts your business or if you require help in meeting your AASB 16 Leases reporting requirements, do not hesitate to contact our team on (08) 8333 3666 or email us email@example.com