Adopting IFRS 15 and 16 at once – double trouble!

Kinaxis Inc. provides a recent example of a company simultaneously applying both IFRS 15 and (voluntarily in advance of the effective date) IFRS 16. The company “is a leading provider of cloud-based subscription software that enables its customers to improve and accelerate analysis and decision-making across their supply chain operations.” Here’s how it presented the…

New leasing standard: it’s low value, so what else do you want?

Issues arising in applying the IFRS 16.5 concession that an issuer not apply its requirements to leases for which “the underlying asset is of low value…” We previously discussed this here, providing some of the IASB’s underlying thinking:  “…many lessees expressed concerns about the costs of applying the requirements of IFRS 16 to leases that are…

More on terms of leases, if maybe not of endearment

As we’ve discussed on many past occasions, the IASB has issued IFRS 16 Leases, effective for annual reporting periods beginning on or after January 1, 2019. We looked here at some matters relating to determining the lease term. This is: the non-cancellable period of a lease, together with both: (a) periods covered by an option…

Cloud computing arrangements – from both sides now

The Canadian IFRS Discussion Group recently returned to the issue of cloud computing arrangements, revisiting its previous discussion in the light of new IFRS 16, among other things. The group had already provided the following examples of such arrangements: Software as a service – This arrangement is a software distribution model where applications are hosted…

IFRS 16 – oddities of the transition process

The IASB recently published an “Implementation Update” on IFRS 16 Leases In the document, “four IASB Members discuss messages they have heard from stakeholders about IFRS 16 implementation over the last year and give advice to companies implementing the new Standard.” Much of this messaging really only consists of emphasizing various bits of the standard,…