The Fundamentals of IFRS 16

Financial reporting specialist and lecturer Adam Deller explains the basic principles of IFRS 16, Leases

[catherineyoung]

Thank you so much, I was struggling to see the bigger picture of IFRS 16 whilst studying my AAT Level 4, and this put it into perspective for me!

[MARIAHESTERGEORGE]

Hello sir. I'm Mariah ester george, an accounting student from Upsi, Malaysia. Thank you for providing a clear explanation of IFRS 16. I learned that leases must recognize a right-of-use asset and a corresponding lease liability on the balance sheet.

[shreekailaashinii]

Hello Sir. I am Shree Kailaashinii, accounting student from UPSI. Through your video, I understand that IFRS 16 requires lessees to recognize a right-of-use asset and a corresponding lease liability on the balance sheet for leases longer than 12 months, providing a more transparent view of a company's financial obligations and assets. Thank you for the great explanation sir!

[kausalyaamohanasundaram]

Good Day Sir, I am kausalyaa, an accounting student from Malaysia. Thank you for presenting IFRS 16. This video taught me about IFRS 16, which requires recognizing a right of use asset and corresponding lease liability on the balance sheet, reflecting the lease term's present value.

[Ytheng]

Hi, sir, I'm Tan Yee Theng, an accounting student from UPSI, Malaysia. Thank you sir, I sincerely appreciate your insightful and help discussion on IFRS 16 Leases. I learned from watching the video that IFRS 16 Leases account for a right-of-use asset on the balance sheet and a related lease liability that reflects the present value of the leases term. Thank you again sir for sharing video to improved our knowledge that related to this topic.

[MUHAMMADSHAZWANHAQIMINBINMOHDN]

Hi sir, I am Shazwan a accounting student from Malaysia. Thank you for your explanation about IFRS 16. In this video, I learned how IFRS 16 Leases recognize on right-of-use asset and a corresponding lease liability on the balance sheet, reflecting the lease term's present value.

That's all from me, thank you for this video.

[THEVAMALARAPVENGADESHWARAN]

Good day Sir, I am Thevamalar Vengadeshwaran from UPSI. Thank you so much for your useful and knowledgeable sharing on IFRS 16 Leases Sir. From this video, I learned that IFRS 16 recognize on right-of-use asset and a corresponding lease liability on the balance sheet, reflecting the lease term's present value.

[nurhidayaharifahmohdazam]

Hi sir, I am Nur Hidayah, an accounting student from UPSI, Malaysia. Thank you sir for this sharing on IFRS 16 Leases. I learned about IFRS 16 Leases account for a right-of-use asset initial recognition and a related lease liability that reflects the present value of unpaid payment.

[veshallinikarthigesu]

Hi sir, I'm a accounting student from Malaysia. Thank you for your explanation about IFRS 16. In this video, I discovered that IFRS 16 Leases accounts for the present value of the lease period by recognizing a right-of-use asset and a related lease obligation on the balance sheet.

[ISWERYALINGAMGOUNDER]

Good Day Sir, Im Iswerya Lingam Gounder from UPSI. Thank you for your explanation on the topic IFRS 16. From this video i learned IFRS 16 which requires recognizing a "right of use" asset and a corresponding lease liability on the balance sheet, reflecting the lease term's present value. It will increases both assets and liabilities, providing a clearer picture of financial information.

[MARIAMBINTIMOHAMEDALI]

Hi sir, I am Mariam from UPSI. Thanks for sharing this useful video. From this video I learn how leases recognize on right-of-use asset and a lease liability on the balance sheet, reflecting the lease term's present value.

[sam-ohud]

Hi sir, I am Mohamad Ibtisam bin Ibrahim from UPSI, from this video, i can understand that through IFRS 16 Leases recognise the asset which is right of use asset reflect the lease terms present value. thankyou for this useful video.

[NURSYAFIQAHBINTINORLIZAN-piei]

Greetings, sir. I'm Nursyafiqah, an accounting student from Malaysia. Through this video ive got to understand the difference between renting and leasing that is under IFRS 16. I also got to understand that IFRS 16 helps companies to easily access the liability resulting from leasing and as a result making companies lease on a shorter term to reduce the said liability

[roshni]

Good day Sir, I'm ROSHNI A/P ELANGKOVAN from UPSI.Thank you for the video sir.From this video, I learned that the right-of-use asset is initially measured at cost, which includes the amount of the initial measurement of the lease liability .

[AsmaulHusna-bxeu]

Good day Sir. I am Asmaul 'Husna Binti Mohammad Razif student from UPSI, Malaysia. Thank you Sir for sharing explanation about IFRS 16.I have laerned that lease is a contract conveys the right to control the use of an identified asset for a period of time in exchange of consideration and the right to control the use of an asset exists by obtaing substant all of economic benefits from the use of the the asset and others. Thank you Sir!.

[ariftarmizi]

Hi sir, I am Muhammad Arif . Student from Malaysia. Thanks for the video . its compact and have a lot and valuable information. through IFRS 16 Leases recognise the asset which is right of use asset reflect the lease terms present value.

[aaroacademy]

Thank you, this lesson is very valuable!

[ANISIDAYUBINTIROSLI]

hi sir, I am Anis Idayu Rosli from UPSI. Thanks for the video. From this video i can learn how leases recognize on right-of-use asset and a corresponding lease liability on the balance sheet, reflecting the lease term's present value.

[DEEPAAPLETCHMANAN]

Hi sir, I’m Deepa Letchmanan from the video I’ve learned that IFRS 16 mandates the recognition of a right-of-use asset and lease liability, characterizes a lease as an agreement to use an asset in exchange for money, and clarifies that control entails obtaining the majority of the asset's advantages

[amaliazaimi]

Have a good sir, my name is Amalia binti mohd zaimi from UPSI accounting student.According from the video, i have learned about MFRS 16 "Leases" fundamentally changes how leases are accounted for by lessees, moving nearly all leases onto the balance sheet. This shift eliminates the distinction between operating and finance leases for lessees, requiring them to recognize a right-of-use asset and a corresponding lease liability. The standard aims to provide a more accurate representation of a company's financial position by increasing transparency and comparability among entities.

The new accounting model affects financial ratios, profit and loss statements, and requires extensive disclosures, influencing stakeholders' perceptions and potentially affecting financial covenants and credit ratings. Although lessor accounting remains largely unchanged, with the continuation of classifying leases as either operating or finance leases, enhanced disclosure requirements ensure greater clarity regarding lessors' exposure to residual value risks.

Overall, MFRS 16 enhances the quality of financial reporting by providing more comprehensive and comparable information about leasing activities, thereby improving users' ability to assess the effects of leases on financial statements.