From 1 January 2019 companies in Singapore will need to implement FRS 116 (equivalent to IFRS 16) for Lease Accounting – which sets out new principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract. This standard eliminates the distinction between finance and operating leases for lessees and requires recognition of lease liabilities for all leasing arrangements.
This contrasts with the existing accounting model for leases which requires lessees to classify their leases as either finance leases or operating leases and account for those leases differently. As a result for lessees not only accounting for leases will undergo a change, important information about significant assets and liabilities arising from such leases will also need to be disclosed.
OutsourcingWise with its extensive experience in accounting can help you understand the nitty gritty of the new standard and how it impacts your leases. We will support you in the transition process for first time reporting, assistance in preparation and designing of disclosure. Our approach for implementation is as follows:
Adapting and implementing new accounting standards is complex, time-consuming and expensive. With OutsourcingWise, you be assured for compliant implementation of the new standard and.
Contact us to learn more.