Set out below are 10 key questions relating to the adoption of IFRS 16. Can you answer them all with certainty? Please contact BDO for assistance with your implementation project.
- How many leases exist?
- Which leases will be brought on balance sheet?
- Which service contracts contain a lease?
- What transitional approach and options are being adopted and why?
- How will changes in amounts recognised in the financial statements affect bonus payments, share option plans, earn outs, banking covenants and costs, and dividend policy?
- If EBITDA is used as a key performance indicator or the basis for bonus payments, share option plans and earn outs, how do the related agreements need to be changed?
- What changes to systems and processes will be required?
- What are the staff training requirements?
- How have the executive board and audit committee been briefed?
- How will brokers and analysts react?
Contact us