IAS 17 Changes
Upcoming IAS 17 changes may alter fundamental methods to the way your company accounts for leases and manages related documents. Under the IAS 17 full standard, lessees are not required to report assets and liabilities from operating leases, with those items being left off of the balance sheet.
Now, because the IAS 17 lease accounting method is being superseded by the IFRS 16 regulations, operating leases will be required on balance sheet reports. Although this seems like a minor change for some, other companies could experience growing pains if their lease management systems are not up to snuff. When it comes to finding the right fit in lease management software, Visual Lease has the answers for your organization. We can provide you with IAS 17 leases summary articles to help you seamlessly transition to the new requirements.
How the IAS 17 changes can be managed with Visual Lease software
The updates to the IAS 17, which will soon be superseded by IFRS 16 regulations, are designed to help financial statement users quickly see the effect of operating leases on an organization’s finances. This helps those statement users develop a useful basis for comparison between companies. Experts believe that these updates to the IAS 17 full standard will lead to:
- Shifts in financial metrics and key performance indicators for a variety of companies
- Changes in disclosures, covenants, and shareholder relationships
- And an increase in reported liabilities, reported debt, assets and other measures
If you are worried about your transition to the IFRS 16 standard and concerned about the upcoming IAS 17 changes, it may be time to consult the experts at Visual Lease. More than just software technicians, our team is your go-to resource for transitioning to the new requirements. We provide you with the resources you need to fully account for all operating leases and the associated reports to support your specific business needs. When you need the answers that can help you respond to regulatory updates, you need the team at Visual Lease. Click today to get started.