As a fleet manager, you may wonder how IFRS 16 (an accounting standard) will affect your fleet. IFRS 16 may have a profound impact on your organisation (as it changes how leased fleet vehicles are accounted for), so it’s important to do your research to make sure you’re fully compliant by 2019 - and send this on to the right person in your team.
What is IFRS 16?
IFRS 16 Leases is an International Financial Reporting Standard announced in 2016, by the International Accounting Standards Board (IASB). IFRS 16 is due to replace IAS 17 (an earlier international leasing standard) by January 2019.
How does IFRS 16 work, and how will it affect your fleet?
According to the official IFRS website, “The objective of IFRS 16 is to report information that (a) faithfully represents lease transactions and (b) provides a basis for users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases.”
This guide will be immensely helpful to your company and financial department.
This guide will help explain:
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Why and how fleet managers should begin preparing for IFRS 16
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How it will affect your fleet
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An IFRS 16 checklist so that you can track your progress towards compliance..