Beyond the GAAP
Keep abreast of news, insights, and standards related to accounting on an international level by downloading our group publication: Beyond The Gaap.
The "Beyond the GAAP" newsletter is published by Mazars in Europe. Its purpose is to keep readers informed of accounting developments in Europe and around the world.
Beyond the GAAP no.138 - November 2019
With the year-end closure approaching, the IFRS Interpretations Committee has finally confirmed its decision on determining the lease term under IFRS 16 – a topic that has been the subject of much debate – and has rejected the idea of amending the new standard just before its application date.
This so-called “clarification” could have substantive impacts for groups that had previously used a legal approach to determining the lease term. They will be forced to change their estimates.
However, in light of the publication date of the Committee’s decision, and the time needed to implement such changes where necessary, they are presumably not required in the financial statements for 2019. If an entity is unable to make the required changes, it should provide detailed disclosures in the notes, as recommended by the French market regulator (AMF).
We will provide a more detailed account of the Committee’s final agenda decision in our next issue.