Financial modelling for IFRS 16 Leases

By Joshua Grimm

Monday 10th October 2022

Webinar by Joshua Grimm & Charles Hadley

IFRS 16 Leases has changed the way we look at financial statements forever. Lease costs which once sat above EBITDA now fall into depreciation expense while the asset sits on its balance sheet, in some cases drastically changing key ratios. Analysts now struggle to identify pre- or post-IFRS 16 figures and finding suitable comparable information is even more time-consuming.

This webinar demonstrates how to present leases in your financial models, including calculating the lease liability, the Right of Use (ROU) asset, and adjustments to the P&L.

Whether you use the new or previous basis to review a project or company, understanding how to effectively model leases gives you the confidence to analyse it regardless.”

Learning points:

  • Understand key changes in accounting treatment of leases for lessees
  • Learn how to incorporate this new Standard in your financial model, including the impact on the three financial statements
  • Analyse the effect of lease accounting on key financial ratios used in decision making