The new lease standard under Part I International Financial Reporting Standards (IFRS) 16 was effective for annual fiscal periods beginning on or after January 1, 2019. The impact was significant for all companies that previously had operating leases. The standard will have a significant impact on companies currently using ASPE that have decided to adopt IFRS. This course provides an in-depth review of the new standard, including the objective and scope of the standard, defined terms, exemptions, transitional requirements and current developments.

This course provides participants with an in-depth review of the new lease standard. The entire standard will be covered however more emphasis is on the areas of change which focus on lessee accounting. The starting point will be identifying a lease and the option of separating components of a contract. The lessee coverage will include the principles of recognition, measurement, presentation and disclosure. The likely costs and benefits of the new standard on the lessee will be discussed and the impact on a company's financial statements and ratios. The lessor coverage will include the classification of leases as finance or operating and disclosure. The topic of sale and leaseback transactions will be reviewed.

Participants will have the opportunity to review a number of illustrative examples and exercises. In addition, to help address transitional and application issues the topics related to leases from the IFRS Discussion group and agenda decisions are reviewed. After attending this course, participants will have reviewed the objective and scope of the standard, defined terms, exemptions and transitional requirements.

Topics Include:

• Introduction to IFRS 16 - objective and scope, defined terms, exemptions, and effective date
• Identifying a lease separate components of a contract lessee and lessor:
  • Lessee:
    • recognition
    • measurement initial and subsequent
    • presentation
    • disclosure
  • Lessor:
    • classification of leases
    • finance leases
    • operating leases
    • subleases
    • disclosure
• Sale and leaseback transactions
• Transitional requirements
• Impact of IFRS 16 on financial statements and ratios
• Current developments
• Relevant resources

NOTE: No updates or changes were made to the 2024 version of this course. If you completed the course in 2023, please be advised the 2024 course material has not changed. If you have any questions, please contact pdevents@cpaontario.ca.

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By the end of this course, participants will be able to:

• Explain the requirements of the new lease standard IFRS 16 for both lessee and lessor.
• Review the likely costs and benefits of the new standard on the lessee and the impacts on the company's financial statements and ratios.
• Explain the impact of transition and required note disclosure.
• Identify potential transitional and application issues.
• Identify impact of rent concessions as a result of Covid-19.