Many companies have underestimated the impact of the adoption of IFRS 16 Leases and the key judgements involved in the transition to the new leasing standard. 

The general consensus amongst IFRS reporters is that the impact of IFRS 16 is simply balance sheet recognition of leases and that it’s not as technically complex to adopt compared to IFRS 15 Revenue from Contracts with Customers or IFRS 9 Financial Instruments.  IFRS 16 largely results in recognition of a lease liability and corresponding right-of-use asset leases, for most historic operating leases, but the challenges associated with determining the transitional adjustments and on-going recognition of new leases are often underestimated.

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