New accounting rule to affect firms with huge lease liabilities

Singapore

COMPANIES here and around the world with significant operating leases such as those in transport and logistics, property and the retail sectors, are expected to face significant difficulties as they try to comply with a new accounting rule for leases.

IFRS 16 Leases - the new accounting standard issued by the International Accounting Standards Board (IASB) on Wednesday - requires leases of more than a year to be placed on balance sheets from January 2019.