IFRS 16 - what are the implications if any?

[PatientCheetah]

I think there are a few accountants on this board. I would love to hear your views. The new accounting treatment seems to do the same adjustments that experienced investors perform anyway.

[LongHaul]

I have not read IFRS 16 but if it causes companies to recognize assets and liabilities that are essentially there anyway I would look thru it. 

 

From a real life experience perspective a lessee is on the hook for paying the remaining lease payments - so that is a real liability in case the lessee wants out and is a potential real liability if one doesn't need the real estate anymore.  Probably end up shortening lease terms for some public companies which may be a good thing.  I sometimes pass on companies if their lease liability is very high relative to the value of the company, as that can be a lot of risk that hits at the worst time.