IFRS 16

"IFRS 16 requires lessees to recognize most leases on their balance sheets,
regardless of the industry that the entity operates in."

IFRS 16

The International Accounting Standards Board issued IFRS 16 Leases, which requires lessees to recognize assets and liabilities for most leases. For lessors, there is little change to the existing accounting in IAS 17 Leases.

The new standard will be effective for annual periods beginning on or after 1 January 2019. Early application is permitted, provided the new revenue standard, IFRS 15 Revenue from Contracts with Customers has been applied, or is applied at the same date as IFRS 16.

What does this mean for office leases?

Real estate leases, including office spaces, will need to be accounted for on balance sheets.

Under exemptions, companies may opt to move to shorter lease terms or outsource office spaces to serviced providers instead, as these would not need to be accounted for on balance sheets.

The Solution

Moving your office lease to shorter lease terms with Airspace or completely outsourcing your office space to Airspace would keep your office space from needing to be accounted for in your balance sheet.

Airspace has private, tech-enabled, and amenity rich spaces ready for teams of 20 to 200.

Summary

• IFRS 16 Comes into effect on January 1st 2019.

• Real estate leases, including office spaces, will need to be accounted for on balance sheets.

• Under exemptions, companies may opt to move to shorter lease terms or outsource office spaces to serviced providers instead, as these would not need to be accounted for on balance sheets.

• More than 500 foreign SEC registrants, with a worldwide market capitalization of US $7 trillion, use IFRS Standards in their US filings.

Why Airspace?

Focus on Your Business

We provide the space and amenities your team needs so that you can focus on your business.

Flexible Terms

We work with landlords to find flexible terms that meet your companies' needs.

Affordable Prices

Airspace can save your business up to 10% over traditional leasing.


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