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Identifying a business combination within the scope of IFRS 3
Mergers and acquisitions are becoming more and more common as entities aim to achieve their growth objectives. IFRS 3 ‘Business Combinations’ contains the requirements for these transactions, which are challenging in practice.
Industry analysis
Banking sector analysis
Grant Thornton's recent analysis of the banking sector in Armenia, is mainly based on the review of historical data.
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Hotel industry: navigating the impact of COVID-19
The hotel industry is dealing with an unprecedented crisis due
to the disruption caused by the global COVID-19 pandemic.
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Grant Thornton’s Virtual office
Grant Thornton’s Virtual office is an innovative platform that completely changes the existing model of delivering our services to your business. It integrates the crucial tools necessary for smooth running of such business processes, as communication, document exchange, task management, financial and operational reporting, with advanced analytics and easy-to-understand visualization in one space.
We have designed the Virtual Office to make your collaboration with Grant Thornton’s team significantly efficient and more comfortable. The platform is intended for executives and managers of Grant Thornton's partner organizations and decision-makers.
Major reforms to global lease accounting
The IASB has published IFRS 16 'Leases', completing its long-running project to overhaul lease accounting.
IFRS 16 will require lessees to account for leases 'on-balance sheet' by recognising a 'right-of-use' asset and a lease liability. For many businesses, however, exemptions for short-term leases and leases of low value assets will greatly reduce the impact.
The main changes are summarised below:
Who is affected?
- entities that lease assets as a lessee or a lessor
What's the impact on lessees?
- all leases will be accounted for 'on-balance sheet', other than short-term and low value asset leases
- lease expense will typically be 'front-loaded'
- lease liability will exclude:
- option periods unless exercise is reasonably certain
- contingent payments that are linked to sales/usage and future changes in an index/rate
What's the impact on lessors?
- only minor changes from the current Standard – IAS 17
Are there other changes?
- a new definition of a lease will result in some arrangements previously classified as leases ceasing to be so, and vice versa
- new guidance on sale and leaseback accounting
- new and different disclosures
When are the changes effective?
- annual periods beginning on or after 1 January 2019
- various transition reliefs
- early application is permitted if IFRS 15 'Revenue from Contracts with Customers' is applied
This special edition of IFRS News explains the key features of the new leasing Standard and provides practical insights into its application and impact.
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