On 13 January 2016, the International Accounting Standards Board (IASB) published IFRS 16
Leases, completing its long-running project to overhaul lease accounting. IFRS 16 will have a
substantial impact on financial statements of lessees around the globe.

The new Standard, which is effective for accounting periods beginning on or after 1 January 2019,
requires lessees to account for leases ‘on-balance sheet’ by recognising a ‘right of use’ asset and a
lease liability. It will affect most companies that report under IFRSs and are involved in leasing, and
will have a substantial impact on the financial statements of lessees of property and high value
equipment. For many other businesses, however, exemptions for short-term leases and leases of low
value assets will reduce the impact. The table below summarises the main changes at a glance. Download full PDF article here

01 March 2016 - Ian Bennett FCA 

New technology is challenging the pre-eminence of Excel in financial modelling and analytics.

Microsoft Excel turned 30 last year. This makes it older than half of my colleagues in PwC’s Deals Modelling team, a team for whom Excel is as clay is to a potter.

Excel was released the same year as the film Back to the Future. Perhaps the film’s director Robert Zemeckis wasn’t into spreadsheets, but he chose not to incorporate it into his vision of 2015 – or maybe the scenes with Hill Valley’s finance and accounting community ended up on the cutting room floor – but it’s fair to say that Excel has a bigger impact today than hoverboards or self-lacing boots. 

28 March 2016

The article was first published on IFAC Global Knowledge Gateway, 22 March 2016

By Hans Hoogervorst, IASB Chairman

Leasing is a common form of finance for many businesses, especially in sectors like the airline industry, retail, and shipping. Currently, listed companies around the world have around US$3.3 trillion worth of leases. Under current accounting requirements, over 85% of these leases are labeled as “operating leases” and are not recorded on the balance sheet.

The IASB has issued 3 new IFRS (3 in 2014 and 1 in 2016)

IFRS 14 – Regulatory Deferral Accounts 2014

IFRS 15 – Revenue from Contracts with Customers – this standard will replace IAS 18 as of January 2018

IFRS 9 – Financial Instrument – to replace IAS 38 with effect from January 2018. There are views from public that IAS 32 (Presentation of Financial Instrument should also be merged with IFRS 9. However, given the complexity in some

IFRS 16 – Leases – will replace IAS 17 by January 2019

When IFRS 16 becomes effective in 2019, it will result in a substantial change to many companies’ balance sheets. All leases will be recognized as assets and liabilities by lessees, better reflecting the underlying economics. It’s mainly for Economic growth



This standard will supersedes the IAS 18 effective January 2018.

5 step Approach

  • Step 1: Identify Contract with Customer
  • Step 2: identify Performance Obligations
  • Step 3 : Determine transaction price
  • Step 4: Allocate transaction price to Performance Obligations
  • Step 5: Recognise revenue




Changed from Transfer of Risks and Rewards of Ownership to Transfer of CONTROL & Transfer of goods and services to Customers.

01 December 2015 - Selena Bartlett 
How to beat common traps in the rat race. Hunched over, hardly moving for hours on end, hitting the same buttons again and again in the hope of a future reward… sound familiar?
I’ve spent most of my 20-year career as a neuroscientist in laboratories, studying rats and other animals to better understand how and why our brains get stuck in vicious cycles of addictive behaviour.

Acuity ISSUE 17

01 December 2015 - Bernard Kellerman 

Prepare yourself – a new breed of email scam is hurting finance teams and costing companies money.

Not long ago, email scams were fairly easy to spot. Usually it was a hard luck story from someone with an impressive title, in need of a small favour to secure fabulous but slightly illicit riches that were just out of reach. 

The Samoan Government recently passed the Income Tax Amendment 2010 no 33 which allows for any local tax paying entities in Samoa who invests in an approved Resort development to write off the complete value off their investment against their tax liability for that year. This window of opportunity is open for just three tax years till 2013.

This allows Samoan taxpaying entities (individuals or companies) to not only minimize their tax for the next three years, but also to acquire shares in a very promising development. 

The Return to Paradise Resort is the only development so far to qualify  for this tax strategy.

Member response

The proposals in Simplifying the Taxation of Small Business in New Zealand have drawn a mixed response from members.   

Official feedback was being compiled as the Journal went to print, but the flavours of opinion can be discerned from the lively discussion underway in the “Members of the Institute of Chartered Accountants” group section of LinkedIn.

Comments under the topic “Simplifying the NZ tax system document number two – become informed it will effect your future” include: 

On 16 May 2013, the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB) (collectively, the Boards) issued exposure drafts proposing a new accounting model for leases, which would require lessees to record most leases on-balance sheet. The proposals mark a significant change from current operating lease accounting for lessees, which currently are off-balance sheet. Lessor accounting would also be affected, but to a lesser extent. Full PDF Download

This second in a two-part series highlights some of the impacts arising from customer accounting and the decisions associated with the provision of “more insightful” information.

In recognising the value of a customer base over a longer period of time, more informed decisions can be made. Many of these decisions will involve capital expansion to further improve customer profitability and firm value. 

Part one explored strategic management accounting and profiled customer accounting. This article provides an overview of Strategic Investment Appraisal and Operational Investment Appraisal, and concludes with a customer profitability checklist for use when current investment is not considered an appropriate option and divestment is being considered.