IFRS 16 and World Resources Institute: Difference between pages

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imported>Doug Williamson
(Spacing and add 'grossing-up' expressly.)
 
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International Financial Reporting Standard 16, dealing with leases.
''Environmental policy - corporate accounting and reporting - standards.''


IFRS 16 replaces IAS 17: Leases.
(WRI).


IFRS 16 is mandatory - for companies reporting under international financial reporting standards - from 1 January 2019.  
The World Resources Institute was established in 1982 to bring objective analysis and policy engagement to the related global challenges of economic development, natural resources and the environment.


It is headquartered in Washington DC, United States.


IFRS 16 requires most lease liabilities to be accounted for 'on balance sheet'.


This change will remove the former distinction between [[operating lease]]s and [[finance lease]]s.
== See also ==
* [[Adaptation finance]]
* [[Emissions]]
* [[Footprint]]
* [[GHG inventory]]
* [[Greenhouse gas]] (GHG)
* [[Greenhouse Gas Protocol]]
* [[Kyoto Protocol]]
* [[Montreal Pledge]]
* [[Natural Capital Protocol]]
* [[Natural resources]]
* [[Renewables]]
* [[World Business Council for Sustainable Development]] (WBCSD)




Broadly speaking, IFRS 16 requires all leases to be recognised on the balance sheet, other than short term leases or those for low value assets.
==Other resources==
The leases to be brought 'on balance sheet' under IFRS 16 include most operating leases that are currently 'off balance sheet' under IAS 17.


IFRS 16 will lead to increased transparency and improved comparability between companies that lease and companies that borrow to buy assets. However, for many companies IFRS 16 will result in a material 'grossing-up' restatement of their balance sheets.
* [https://www.wri.org/our-work World Resources Institute - Our Work]
* [https://www.wri.org/insights/adaptation-finance-explained Adaptation finance explained - WRI]


This will normally impact any financial covenant ratios that include ‘debt’, ‘net worth’ or similar indicators, subject to any 'frozen GAAP' provisions. EBITDA and the interest cover ratio are also likely to be impacted.
[[Category:Accounting,_tax_and_regulation]]
[[Category:Compliance_and_audit]]
[[Category:Corporate_finance]]
[[Category:Identify_and_assess_risks]]
[[Category:Investment]]
[[Category:Long_term_funding]]
[[Category:Manage_risks]]
[[Category:Risk_reporting]]
[[Category:Risk_frameworks]]
[[Category:The_business_context]]


 
[[Category:Accounting,_tax_and_regulation]]
IFRS 16 is issued by the International Accounting Standards Board.
[[Category:Compliance_and_audit]]
 
[[Category:Corporate_finance]]
 
[[Category:Identify_and_assess_risks]]
==See also==
[[Category:Investment]]
*[[Finance lease]]
[[Category:Long_term_funding]]
*[[Operating lease]]
[[Category:Manage_risks]]
*[[IAS 17]]
[[Category:Risk_reporting]]
*[[Lease]]
[[Category:Risk_frameworks]]
*[[Debt]]
[[Category:The_business_context]]
*[[EBITDA]]
*[[Frozen GAAP]]
*[[Interest cover]]
*[[Net worth]]
*[[International Financial Reporting Standards]]

Latest revision as of 04:03, 1 November 2024

Environmental policy - corporate accounting and reporting - standards.

(WRI).

The World Resources Institute was established in 1982 to bring objective analysis and policy engagement to the related global challenges of economic development, natural resources and the environment.

It is headquartered in Washington DC, United States.


See also


Other resources

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