Key areas to consider for lessees applying NZ IFRS 16 Leases in years after first-time adoption

The External Reporting Board (XRB) has issued staff guidance on key areas to consider for lessees applying NZ IFRS 16 Leases in years after first-time adoption.

NZ IFRS 16 introduced a fundamental change to lease accounting, bringing nearly all leases onto the balance sheet for Tier 1 and 2 for-profit lessees. In years after initial adoption there are many factors that an entity needs to consider at each reporting cycle in relation to lease accounting.

The guide highlights the ongoing requirements of NZ IFRS 16, some of the interplay with other Standards, and is intended to help entities identify areas where further analysis may need to be undertaken. The guide also includes frequently asked questions.

The guide can be accessed here.

For more on the above, please contact your local BDO representative.

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