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Impact of the new standard
With the introduction of Australian Accounting Standards Board (AASB) 16 Lease standard comes a new level of complexity and cost in commercial and financial reporting.
Effective from 1 January 2019, the new standard will impact almost all businesses across Australia. Virtually every company uses rentals or leasing as a means to obtain access to assets and will therefore be affected by AASB 16.
Some sectors will be more affected by the changes than others. Airlines, retailers, and the travel and leisure industry are expected to feel the greatest impact.
Directors and preparers should be mindful of legislative obligations for companies to keep financial records that correctly record and explain their transactions and financial position and performance, and that would enable true and fair financial statements to be prepared and audited.
“We are concerned that some companies may not have adequately prepared for the impact of new accounting standards that can significantly affect results reported to the market by companies, require changes to systems and processes, and affect businesses. We will monitor these areas closely and will take action where
How we can help you
The new standard requires lessees to recognise nearly all leases on the balance sheet. Implementation will be costly as it requires modifications to a lessee’s financial reporting, accounting systems, processes and controls. Failure to comply will be equally expensive and time consuming.
Given the complexity and cost of transitioning, as well as regulatory interest in corporate implementation of the standard, getting it right the first time is crucial.
Take the complexity, cost and burden out of implementing AASB 16 with our toolkit, which will assist you with:
Transitioning affected leases to AASB 16 and calculating the impact on the financial statements, as well as providing the adjusting journal entries; and
Operationalising AASB 16 by calculating the financial statement impact of these leases over future financial years, and providing the relevant adjusting journal entries.
|10 leases or 50 leases model outputs.||10 leases or 50 leases model outputs.|
|3 transition options for market value leases.||Models financial statement impact of pre and post-AASB 16 transition leases over a 20-year period (up to year 2040).|
|Financial statement impact - dashboard representation and detailed analysis over the transition years.||Adjusting / transition journal entries with associated figures based on model inputs.|
|Adjusting / transition journal entries with associated figures based on model inputs.|
Haven’t started implementation? Quantify the financial statement impact during both transition and operationalisation with the AASB 16 Lease Accounting Toolkit.
Are you already implementing AASB 16? Validate the transition and operationalisation outcomes with the AASB 16 Lease Accounting Toolkit.
of Australia's largest
companies have adequately
considered the impact
of the new accounting
review close to100FULL-YEAR FINANCIAL
and selected half-year reports
as it continues to raise concerns
over the take up of the new
Purchase Options50 Leases Bundle
50 lease capacity transition and operational models
(Includes both 10 leases and 50 leases model outputs)
10 lease capacity transition and operational models
Included FREE with the purchase of each bundle are the following:
- 1-on-1 training by webinar that is specific to your organisation's needs; and
- 1 hour of free product support.
Watch our short video to see how the Accounting Toolkit works.Watch video
2 Source: PwC’s report ‘Is corporate Australia ready for major accounting changes?’– PWC research report, December 2017
Why choose AASB Lease Accounting Toolkit?
Intuitive & Easy to Use
It uses a straightforward Excel spreadsheet model.
Save on Time and Fees
Saves you time and third party costs.
Pre-to-Post Transition Coverage
It has you covered from transition to post-implementation stages.
Where are Australian corporates at with AASB 16?
20% of the top Australian corporates have not progressed on AASB 16 impact assessment...
…with a majority still in the process of impact evaluation and ongoing implementation…
…and a mere 4% having completed an impact assessment on their business.
AASB 16 Lease Accounting Toolkit can rapidly get you from red to green.
*Source: ‘Is corporate Australia ready for major accounting changes?’ – PWC research report, December 2017