IFRS 16 – LEASES
Overview
This comprehensive 5-day course provides an in-depth understanding of IFRS 16 – Leases, focusing on its principles, application, and impact on financial reporting. Participants will learn how to identify leases, measure right-of-use assets and lease liabilities, and apply accounting treatments for both lessees and lessors. The course covers advanced topics such as lease modifications, discount rates, and transition approaches, supported by practical examples and case studies. By the end of the program, attendees will be equipped to implement IFRS 16 effectively and ensure compliance with international standards.
Objectives
- Explain the scope and principles of IFRS 16
- Identify and classify lease arrangements accurately
- Apply lessee and lessor accounting requirements
- Calculate right-of-use assets and lease liabilities
- Analyze lease modifications and variable payments
- Implement transition approaches effectively
- Prepare compliant financial statements and disclosures
- Evaluate real-world scenarios and resolve practical challenges
Key Competencies
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Lease Identification
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Measurement Techniques
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Lessee Accounting
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Lessor Accounting
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Financial Statement Presentation
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Disclosure Requirements
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Transition Approaches
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Practical Application
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Compliance Analysis
Course Outline
Day 1 – Foundations
- Introduction to IFRS 16 & why it replaced IAS 17
- Key differences and financial impact
- Scope and exemptions
- Case study: Identifying leases
Day 2 – Initial Measurement
- Lessee accounting model
- Measuring lease liability & ROU asset
- Discount rate determination
- Practical Excel workshop: Initial measurement & journal entries
Day 3 – Subsequent Measurement
- Depreciation & interest expense
- Lease modifications
- Special areas: short-term leases, low-value assets
- Practical exercise: Full-year accounting & remeasurement
Day 4 – Lessor Accounting & Disclosures
- Finance vs operating leases
- Recognition and measurement
- Presentation & disclosure requirements
- Hands-on: Build disclosure notes from real FS examples
Day 5 – Advanced Topics & Final Case
- Complex areas (foreign currency, residual guarantees)
- Industry-specific applications (retail, real estate, airlines)
- Comprehensive case study + final assessment
Outline and competencies are indicative; the final agenda is tailored and confirmed with VIFM.
Who Should Attend
Finance professionals, accountants, auditors, and reporting specialists responsible for implementing IFRS standards, particularly those involved in lease accounting and financial statement preparation.
Methodology
The course combines interactive lectures, practical exercises, real-world case studies, and group discussions to ensure participants gain both theoretical knowledge and hands-on experience in applying IFRS 16.
Interested in this programme?
Reserve your place and our learning advisor will contact you.