IFRS 16 Masterclass

The programme

Programme overview

Ratomac IFRS 16 Masterclass provides comprehensive training on the IFRS 16 standard for lease accounting, which replaces IAS 17. Participants will learn to identify whether arrangements contain leases, understand the key principles of IFRS 16, and apply the standard in practical scenarios. The course highlights the impact of IFRS 16 on financial statements, especially for organisations with major assets under operating leases, addressing off-balance-sheet financing issues.

Key changes from IAS 17 and potential judgement areas in applying IFRS 16 will be covered. The course also emphasises the increase in accounting complexity and ongoing maintenance requirements due to the assumptions and estimates needed by IFRS 16. Practical case studies and detailed analyses will help delegates understand and implement the standard effectively.

Who should attend

Who is this programme for?

• Finance Directors
• Heads of Finance
• Chief Financial Officers
• Accounts Managers
• Accountants
• Internal Auditors

Learning outcomes

What you will learn

• Explaining the fundamental requirements of IFRS 16, including key changes from IAS 17
• Understanding the IFRS 16 standard and how it will impact the financial statements
• Understanding the new business perspective and the main changes brought by IFRS 16
• Identifying the common challenges and pitfalls when applying the requirements of IFRS 16
• Exploring the frequently asked questions raised by companies and auditors
• Explaining key disclosure requirements
• Using relevant case studies and scenarios to understand how the requirements should be applied and how they are likely to affect you
• Identifying commercial arrangements in interpreting criteria such as ‘definition of a lease’, ‘identified asset’, and ‘lease term’, and the impact on accounting outcomes
• Identifying the risks in a lease portfolio, areas of potential cost savings, and lease portfolio optimisation

Explore the programme

Detailed programme outline

IFRS 16 Leases — Training Outline

• Objective and scope of IFRS 16
• The latest on worldwide adoption of IFRS
• Recognition exemptions
• Determining whether an arrangement contains a lease
• Identifying and separating lease and non-lease components of a contract, and allocating contract consideration
• Contract combinations
• Inception of a contract, and commencement date of the lease
• Lessee involvement with the underlying asset before the commencement date
• Lease term and purchase option
• Lease payments and discount rates
• Initial direct costs, economic life, and fair value
• Initial recognition and initial measurement
• Subsequent measurement
• Remeasurement of lease liabilities
• Lease modifications and other lessee matters
• Presentation and disclosure
• Lease classification, and key concepts applied by lessors
• Finance leases and operating leases
• Lease modifications and other lessor matters
• Intermediate and advanced lessor accounting
• Sub-lessee accounting, presentation, and disclosure
• Determining whether the transfer of an asset is a sale
• Transactions in which the transfer of an asset is a sale, and transactions in which it is not
• Disclosure
• Acquiree in a business combination is a lessee
• Acquiree in a business combination is a lessor
• Effective date and transition requirement
• Lessee transition and Lessors transition
• Other considerations and Disclosure

Learning approach

How you will learn

Our diverse instructional approaches ensure effective learning:

– Lectures & Presentations: Engage with expert-driven, stimulating content.– Course Material: Access well-crafted supporting resources.– Group Work: Collaborate on discussions and case studies for practical insights.– Workshops & Role-Play: Participate in immersive, scenario-based activities.– Practical Application: Focus on applying theoretical knowledge in real situations.– Post-Training Support: Receive extensive support after training for skill implementation.

Discuss your requirements

Dates, duration & arrangements

Contact Ratomac to confirm dates, duration, delivery format, entry requirements and any applicable assessment or certification before booking.