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MCA has notified Ind AS 116 – Leases which will is applicable from 1st April 2019. This is in line with the IFRS 16, which is issued by IASB which is applicable from 1st Jan 2019, globally.
This one day workshop will focus on changes included under Ind AS 116 – Leases and its impact on various industries. We will also discuss about challenges faced by different industries while implementing Ind AS 115 – Revenue from contract with customers.
Ind AS 116/ IFRS 16 represents the first overhaul of lease accounting for over three decades. The IASB has long considered the existing split between operating and finance leases as problematic as it has resulted in too much structuring and off-balance sheet financing. Therefore, IFRS 16 has done away with the operating
versus finance lease distinction and requires accounting for all leases to be ‘on-balance sheet’ for lessees.
This is also revised the definition of lease contracts, this will now include most of the sale purchase or service contracts be classified as lease contract in case customer is obtaining substantial benefits and have ability to direct.
It has major impacts on various industries like: