Best practice management of currency under IFRS16

Under IAS17, operating leases result in financial (monetary) obligations being set off in the income statement at the daily rate or, most commonly, the average monthly rate. Under IFRS16, the interest and redemption components are derived from the lease liability and therefore have a 'monetary' face. But in the balance sheet the capitalisation, and in the profit and loss account the depreciation amount of the leased asset, is included in the country/functional currency. Just to illustrate, an example in journal entries is presented.

Best practice management of currency under IFRS16

Jan 17, 2019

Under IAS17, operating leases result in financial (monetary) obligations being set off in the income statement at the daily rate or, most commonly, the average monthly rate. Under IFRS16, the interest and redemption components are derived from the lease liability and therefore have a 'monetary' face. But in the balance sheet the capitalisation, and in the profit and loss account the depreciation amount of the leased asset, is included in the country/functional currency. Just to illustrate, an example in journal entries is presented.

Italian captive auto finance companies fined €670 million over cartel

The Italian competition authority has issued fines totalling €670 million to a number of car manufacturers and captive auto finance houses after ruling they restricted competition for more than a decade. Allegations from the AGCM (Autorità Garante della Concorrenza e del Mercato) competition authority related to infringements between 2003 and 2017.

Italian captive auto finance companies fined €670 million over cartel

Jan 10, 2019

The Italian competition authority has issued fines totalling €670 million to a number of car manufacturers and captive auto finance houses after ruling they restricted competition for more than a decade. Allegations from the AGCM (Autorità Garante della Concorrenza e del Mercato) competition authority related to infringements between 2003 and 2017.

IFRS16 and the challenge of foreign currencies

With the introduction of IFRS16 - Leases, issued by the International Accounting Standards Board (IASB), operating leases will be included in the balance sheet no later than January 1, 2019. The dilemma for institutions with operating leases in foreign currencies is to reconsider the currency risks as a result of the new accounting requirements.

IFRS16 and the challenge of foreign currencies

Oct 31, 2018

With the introduction of IFRS16 - Leases, issued by the International Accounting Standards Board (IASB), operating leases will be included in the balance sheet no later than January 1, 2019. The dilemma for institutions with operating leases in foreign currencies is to reconsider the currency risks as a result of the new accounting requirements.

Lease accounting

Leaseurope workshop to explore impact of IFRS 9 on European leasing industry

Jun 05, 2018

In all the furore over the new IFRS 16 rules for lease accounting, another important new accounting standard that could have a significant impact on the European leasing industry has slipped in relatively quietly. For lessors using international accounting standards, IFRS 9 can lead to big changes to reporting of loan impairments and defaults. It can also create a need for a lot of extra data to support the accounting estimates made, particularly for non-banks and banks using the standardised approach for their capital requirements calculations. As implementation of IFRS 9 is now underway, Leaseurope’s next event in its programme of regulatory workshops will be a review of emerging impacts and issues on specialist lenders, including leasing and consumer credit firms.

BREXIT

Negotiators struggle to build bridges as Brexit looms

Nov 10, 2017

While business leaders in the UK and Europe have stressed the importance of a smooth Brexit transition to protect the economies of both sides, there are signs that negotiators are struggling to find common ground on key issues. As the Brexit deadline of March 28, 2019 approaches, this special report looks in detail at progress from both sides of the negotiating table.