The IASB published IFRS 16 Leases in January 2016 with an effective date of 1 January 2019. The new standard requires lessees to recognise nearly all leases on the balance sheet which will reflect their right to use an asset for a period of time and the associated liability for payments. PwC’s IFRS 16 Post-Implementation Survey sought to understand how IFRS 16 implementations went and where challenges continue to reside.
Our survey of 400 executives showed that many companies, post transition date, are still challenged with suboptimal implementations with limited integration and reliance on manual processes. Significant opportunities exist to optimise systems and processes with further integration of IT solutions and automation of lease processes.
Most companies to-date also have not identified benefits from IFRS 16 beyond compliance. They now have a treasure trove of lease data available, which combined with the right tools and data and analytics can be leveraged to inform improved lease versus buy decision making, reduce lease costs and better manage risks from leasing.
- Not all respondents answered all questions.
- Some questions allowed for multiple response selection.
- Not all figures add up to 100% as a result of rounding percentages.
Source: PwC's 2019 IFRS 16 Post-Implementation Survey