Shares & Derivatives
What is IFRS 16 and why is it so important? [Case study – Singapore Airlines]
By The Asia Report  •  January 13, 2019
This is a slightly technical post but highly relevant if you for certain types of businesses where leasing is prevalent. Come 2019, new accounting standards (specifically IFRS 16) will come into effect which will drive up the leverage ratios of businesses which have significant leases liabilities. The new leases standard – IFRS 16 – will require companies to bring most leases on-balance sheet from 2019. Explaining it in layman terms Let us think about this in terms of you buying a car. The normal route to buying a car would be for you to take a car loan. You would take ownership of the asset in your name, and the corresponding debt to pay for it too. The alternative way to do it is to lease it. A lease is simply a contractual arrangement that allows the lessee (user) to pay the lessor (owner) for use of an asset. You can...
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By The Asia Report
Richard is passionate about teaching the principles of value investing to people from all walks of life. Richard is also a frequent guest speaker on investing and financial markets at institutions such as University College London and the London School of Economics, and at investment conferences held in Singapore ...
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