taxNews
Konnectplus
Kenya

Accounting For Lease IFRS-16 New Standard

id : 110 Other   
posted by : Admin
 DOQ : 2023-05-24 07:14:51
   Admin
  
110_23050723.jpeg

BACKGROUND

In January 2016, the International Accounting Standards Board (‘IASB’) issued IFRS 16 replacing IAS 17. IFRS 16 has fundamentally changed accounting for operating leases.

IFRS 16 became effective as from 01 January 2019 and has a major impact on the accounting and tax treatment for lessees of property and high-value equipment.

The new lease accounting standard FRS-16 brings added transparency to the balance sheet.

The new standard requires companies to bring most leases on-balance sheet, recognising new assets and liabilities. At present, many analysts adjust financial statements to reflect lease transactions that companies hold off-balance sheet.

All companies that lease major assets for use in their business will see an increase in reported assets and liabilities. This will affect a wide variety of sectors, from airlines that lease aircraft to retailers that lease stores. The larger the lease portfolio, the greater the impact on key reporting metrics.


You may also like...

111_23050623.jpeg

The tax treatment of lease transactions in Kenya is based on whether the lease qualifies as a lease

110_23050723.jpeg

BACKGROUND In January 2016, the International Accounting Standards Board (‘IASB’) issued IFRS

109_21040304.jpg

By John Muiruri Reviewed April 06, 2021 The difference between being an independent contractor

108_21040845.jpg

108_21040845.jpg

The Kenya Revenue Authority (KRA) on Monday suffered a blow after the High Court sitting in Nairobi
WHAT HAS CHANGED? HMRC has changed its approach to VAT on deposits. The change affects situations w

102_20051257.jpg

102_20051257.jpg

Kenya’s Taxman will introduce an amnesty programme for income tax, VAT and Excise Duty once the Fi

my Views
(0)
taxBaddy.com @2014-2023 All rights reserved
Powered by : gravityworks@taxbaddy.com