ifrs16-leases-webinar-presentation-slides-march-2016.pdf

IFRS detailed PPT

1. >
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e «
cutting through complexity

IFRS 16 A
Leases Overview +” LA

March 2016

2. Patricia Stebbens Michael Voogt

Partner Director

KPMG

3. Villy new leasing standard?

Gurently anelyete adjunt
finanalal atetarmente far eff-
holenes chest Innen

Under IFRS 18, companias
‘wall bring these lenese en
kalumse chest, using e
common mathodalngy

4. Agenda

1. Mujer Impacto far lassses
2, Mew ceflalilon

3, Newenzauning

4, Mußipietnemeitian aptians

3 Meal ed Isar eas exe tale
©. Koy palmieso umamlar

5. Major impacts for
lessees

6. Balance sheet

Asset

= ‘Right-of-use’ of underlying asset
Liability

= Obligation to make lease payments

P&L
Lease expense
Depreciation
+ Interest

= Front-loaded total lease
expense

7. impact on balance sheet

Cempaniss with opening)
Innsss will appesr'is be
mers a AS
mare treuil ral mel

Idea IE la y

Ea Sn
en

8. impact on profifloss

Teial innen era.
be front-lended ove
— e rentals e

EI Deprecisiion IM Inter
(Elcano

Ll

9. impact on financial ratios

Bb — =-

rt 1 1

Ea ele
ne

10. New definition

11. Lease definition

pe na en

Gurvize
Gparating
haras

A

12. Lease definition
Contrast, or part of a contract, that

conveys the right to use an seest fora
parled of time In exchange for

consideration
GPRS 19, Appandie A)

13. Lease definition - identified asset

en ire art am hm pan Mil ete
remet + Na ar nt aan

monet ond may o Preeti ay grt Blasi
shangewhish u ram =. Bu
A En ct ln pri yal

14. |
Is there an identified asset? as

Customer has right to substantially all the economic benefits?

| KPMG |

15. Solar farm example

Campany €
ES yr pures elmatricity |

Ramwaklsaragy sets $
SS |

Cartier ten ardía
a

16. M
Is there an identified asset? a

A ñ a Ne
Customer has right to substantially all the economic benefits?

Who directs how and for what purpose the asset is used?

| KPMG |

17. Who directs how and for what purpose the asset is used?

Customer Ne
= Operates the asset or
= Has designed the

asset?

| KPMG |

18. Power purchase example
" grana paa pant area ny Surgery D

|. Gampany © eltamie how anal ar wirat purgas?
I. Company D dents how are far wiret pure?

Ea it
eo at

19. New accounting

20. Lease recognition exemotions

== M ©

Short term Lenses ef law
ee il I} value liamre
£12 months SUBD 2,020
far example

21. Lease liability

| KPMG |

22. Fixed payments
Variable lease payments

Residual value guarantees

Purchase option exercise price

Payments for terminating

| KPMG |

Inside Inaubalares Fed payrrenie /ineaniiven
only far indexer mito nato el sammanement
at amaurt neem expecta te pay

23. VarlaQle lease payments

Paymanis beesd an

Ea Sn
>

24. Messuiing tie right-oF-Use asset

25. Lessor accounting
Lesser sensumting Ez Y

currant prantion... E JS

= a ounsiatenay
new AE
ne modal

26. Lessor accounting

Wider changes haus an Impeei
» Betlnition aflame

" Lasse payment quidence

" Gelnend loses hack guidance
= Qukisuseguklanes

» Mediiikssilen socaunting

= Diaziomure requirements

Changes In contrast terme end aualress practices

27. Sale -ancHeasanank

IFRS 19 azzanila!|y Hills
sulwandIiszunkack >

an eif-kulunge aient
firaralng etrusture

Ea Sn
>

28. Multiple transition options

29. Anniving the new lease definition

Ansty the mow defini tool € oo

En aren anion Li; >

30. Annlying the new standard

Alsazze cun chooss is
apply the standard.

Patvespoctivaly te ell
sesaunting periodo
on

ath the lt |
Initial applicntien

Di summer

31. Effective date

32. Next steps and NOW WE
Can help

33. Which contracts are leases?
Which transition options to
hi 7
Sams questions te access —
the Impast em your Database of all leases?
eampeny’s {inanalal Eyetemetane precesteainilecen
atatamania

What about ratios and covenants?
Commercial opportunities

IMPACT ASSESSMENT

| KPMG |

34. Broader business Impagis

bd

N INES

35. | KPMG. |

36. Key points to remember

37. = [Presea al conn
abad eier! ram, ing eens

| KPMG |

38. EJ TK
FERA =

SE en RITES ' un
pres pri y o ari ted a mui: