IFRS 16 Leases: extractives and mining sector - part 8

In part eight of our series on IFRS 16 Leases, Louise Sayers, audit partner and head of natural resources at BDO, examines why it is of particular importance to the extractives and mining sector and what companies should consider when applying the new standard

Leasing is an important activity for many entities, and in particular for companies operating in the extractives and the mining sector. These businesses often require significant and costly assets in order to undertake their exploration, development and production activities. At every stage of their life, cycle extractive and mining companies will look at leasing options in order to gain access to the assets they need whilst reducing their exposure to the risks of asset ownership.

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