If the poll results from the Financial Reporting Faculty’s recent webinar are anything to go by, the answer appears to be ‘no’!
In the webinar, IFRS 16 Leases – Making sense of the new standard, we asked the audience a number of questions with some interesting results.
In response to the question ‘How would you describe your state of IFRS 16 readiness?’ over 70% replied that they had either not yet started preparing for first-time application of IFRS 16, or had started but with still a lot to do. Yet over 60% felt that IFRS 16 would have a significant or material impact on their accounts.
When asked ‘So far, what has been the biggest challenge in preparing for IFRS 16?’ the responses were more varied. 27% felt that gathering the necessary data was the biggest challenge, and 58% thought that determining the discount rate was the biggest headache.
The record number of questions asked during the webinar on a wide variety of issues no doubt reflects the wide-ranging impact IFRS 16 is likely to have when applied for the first-time. The standard is mandatory for accounting periods beginning on or after 1 January 2019 but good quality disclosures on the potential impact of IFRS 16 will be required sooner. So the importance of starting the processes required ahead of first-time application sooner rather than later should not be underestimated.
If you are looking for practical help in understanding more about IFRS 16 you may be interested in registering for the ‘virtual’ conference on IFRS 16 being held jointly by ICAEW and the IFRS Foundation on 10 October 2017. Details can be found at www.icaew.com/ifrsvirtualconference. Delegates will benefit from insights from IASB and other IFRS experts, on-demand webinars, live interactive panel discussions in three time zones and Question and Answer sessions.