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What does IFRS 16 mean for a Company´s income statement ?

Foto do escritor: Jose Devair GonçalesJose Devair Gonçales

For companies with material off balance leases, IFRS 16 changes the nature of expenses related to those leases. IFRS 16 replaces the typical straight-line operating lease expense for those leases applying IAS 17 with a depreciation charge for lease assets (included within operating costs) and an interest expense on lease liabilities (included within finance costs). This change aligns the lease expense treatment for all leases. Although the depreciation charge is typically even, the interest expense reduces over the life of the lease as lease payments are made. This results in a reducing total expense as an individual lease matures. The difference in the expense profile between IFRS 16 and IAS 17 is expected to be insignificant for many companies holding a portfolio of leases that start and end in different reporting periods.

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©2018 by  Leads S/A - RENTS IFRS16.

Gestão de Contratos de Locações e Arrendamentos, IFRS 16 (CPC 06), Arrendamento mercantil financeiro, Solução em nuvem para IFRS 16 / CPC 06

Norma IFRS16, Contratos de Aluguel, Arrendamento, Leasing, IAS17, IASB

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