GlobalAutoTV
China and the WTO
Charles W. Freeman III
Click to watch Charles W. Freeman III - China and the WTO
Click to watch Charles W. Freeman III - China and the WTO
china resources


Need an office in China? Office suites, meeting rooms, virtual offices, network access



free downloads
CHINA: "Standardization and normalization of "Thousand Groups Project": A new stage of tax administr

CHINA: "Standardization and normalization of "Thousand Groups Project": A new stage of tax administration on large business groups" report. 4-page Tax Alert by PwC China.

proceed to download
eJournals



back to index backCHINAtalk May,  2017


China: IFRS 16 – Lease definition

The new on-/off-balance sheet test.

Under the new leasing standard, IFRS 16, lease definition becomes the key on-/off-balance sheet test. Therefore, assessing whether an arrangement is, or contains, a lease will be one of the biggest practical issues.

Our publication, Lease Definition (PDF 657 KB), will help you to determine whether a transaction is, or contains, a lease and to understand the differences to current practice.

Applying the new lease definition
In many cases, assessing whether a transaction is a lease will be straightforward, and a transaction that is a lease today will be a lease under the new standard. A key focus will be completing and documenting the assessment.

In other cases, the assessment will be more complex and there may be changes in which transactions are identified as leases – e.g. power purchase, IT outsourcing and transport agreements.

Deciding whether to grandfather the lease definition
As companies prepare to adopt the new standard, a key decision will be whether to apply the practical expedient to grandfather the lease definition for existing contracts on transition. This is a balancing act.

Although this practical expedient offers considerable relief, it may result in continued lease accounting for contracts that are not leases under IFRS 16. In addition, it may impact comparability in the years after transition.

You need to weigh potential cost savings against reduced comparability.

Identifying all lease agreements and extracting all key data
The effort required to identify all lease agreements and extract all relevant data may be substantial. Even if the simplified model is applied for short-term and low-value item leases, each lease will still need to be identified and its key terms extracted.

The task ahead should not be underestimated.

To download 60-page report, please click here.

Source: KPMG China - GAI



previous page

go top
search our site


Loading

CHINAtalk

Other articles from the same issue (May,  2017).

Automakers answer govt call to expand
play read on

China to allow majority foreign ownership for car ventures
play read on

China's annual output of automobiles expected to break 50m
play read on

China bares plan to be top global automaker by 2027
play read on

Chinese Car-Sharing is Blossoming
play read on

China’s auto industry should independently develop technologies
play read on

Consumer Insights on New Energy Vehicles in China
play read on

Tax incentives and future development trends of the New Energy Vehicle industry
play read on

A Robot Revolution, This Time in China
play read on

CFOs are turning positive and prioritize business expansion in 2017
play read on

Quality of Leadership Matters Most to Senior Talent in China, Finds Latest Employer Branding Survey
play read on

Making Sense of China’s 2017 Economic Growth Target
play read on

What to expect from Made in China 2025 and China's first Belt and Road Forum
play read on

Prospects for future economic cooperation between China and Belt & Road countries
play read on

China's rising leverage is a growing risk
play read on

It’s Time for the U.S. to Revoke China’s Free Pass on Trade
play read on

China Contract Templates: the Cons and the Cons
play read on

More Than 25 Employees: Do I Need To Establish A Trade Union?
play read on

One Belt One Road in 2017: Continuing the Momentum
play read on

China Cyber News Alert
play read on

Work Permit Changes to Attract Foreign Talent
play read on

“Two Invoice System”
play read on

Draft Amendment to the Anti-Unfair Competition Law Pending Final Review
play read on

China: IFRS 16 – Lease definition
play read on

Where Manufacturing Activity Stands in China
play read on

Belt and Road online database released in Shanghai
play read on

A New Dawn for the International Tax System: Evolution from past to future and what role will China play?
play read on

How fintech disrupts supply chain finance in China
play read on

China-ASEAN trade to hit $1t by 2020
play read on

China's emergence as a key patent litigation hub poses challenges for its companies
play read on


Our Free eJournals
GlobalAutoExperts

To visit GlobalAutoExperts Directory, click here.


©2008 GlobalAutoIndustry.com | HCI Group, Ltd.
101 West Big Beaver Road, Suite 1400 | Troy, MI 48084 USA
USA Tel: +1.248.687.1060 | USA Fax: +1.248.927.0347
Fax UK: +44.(0)845.127.4765 | Fax Europe: +31.20.524.1659 | Fax Asia: +852.3015.8120