Maria Allen

IFRS 16 changed how leases are measured and recognized. Now a new standard, IFRS 18, is changing how financial performance gets presented overall, and that has real implications for how lease related figures show up in your financial statements. If your business reports under IFRS, this is a change worth understanding well before it becomes

Sale-and-leaseback deals have long been a popular way for businesses to free up cash tied up in property or equipment while still keeping the use of that asset. But for years, one part of the accounting for these transactions had a gap that created real inconsistency across companies. Standard setters addressed this gap with a

Not every contract that includes a lease is purely a lease. Many agreements bundle the right to use an asset together with other services, such as maintenance, insurance, or utilities. Under IFRS 16, businesses are required to separate, or “unbundle,” these components, and getting this wrong can significantly distort your lease liability and right of

Lease agreements are rarely as simple as a fixed monthly payment. Many contracts include variable elements, whether tied to an index, a market rate, sales performance, or actual usage of the leased asset. Under IFRS 16, how these variable payments are treated depends entirely on what they are linked to, and getting this classification wrong

One of the trickier parts of IFRS 16 is that the lease term is not always a fixed, simple number. Many leases include renewal options, termination options, or both, and businesses need to make a judgment call about whether these options will actually be exercised. That judgment does not stay static either. It can change