Introduction

Information:

In January 2016, the International Accounting Standards Board published IFRS 16 – Leases (IFRS 16) which will replace the existing IAS 17 – Leases (the Standard is not approved at the moment).

The Standard would apply to reporting periods beginning on 1 January 2019.

The Standard provides for a new definition of lease based on the concept of control over an asset and, among other things, requires that lessees should recognise, in the balance sheet, assets and liabilities from all lease contracts meeting the criteria provided for in the Standard, with a small number of exceptions and simplifications. In the case of operating lease, under IFRS 16, upon the signing of the contract, the lessee will recognise, in the balance sheet, assets and liabilities arising from future contractual cash flows. Leases of office space or other space for business purposes or leases of the means of transportation or other assets will be reflected in the lessee’s assets and liabilities measured at discounted expected contractual cash flows. This change may have a significant impact on the financial position of the Company, including its debt ratios, the assessment of bank loan covenants or of conditions under other borrowing agreements. It may also affect EBIT.

We provide IFRS 16 and other services throughout Poland in regional offices in Warsaw, Łódź and Poznań, Opole, Wrocław, Katowice, Lublin, Gdańsk and Zielona Góra.