A Ranking of the Leasing Obligations of the FTSE 350
Starting on 1 January 2019, companies began to adopt the new IFRS 16 lease accounting standard published by the International Accounting Standards Board (IASB). As one of the biggest accounting changes in history, IFRS 16 will result in listed companies transferring almost $3 trillion worth of liabilities onto corporate balance sheets over the coming years.
Historically, only finance leases have been reported as assets and liabilities on corporate balance sheets. Other leases, called operating leases, were “off-balance sheet” and were accounted for using principles similar to service contracts. IFRS 16 eliminates the operating leases classification. Instead, all leases will be treated as finance leases.
In an effort to help the market prepare for the introduction of IFRS 16, LeaseAccelerator ranked the operating lease obligations of the FTSE 350 to determine which companies and industries will be most impacted by the change. For more details, download the full report.