The effective date for two new standards is fast approaching and the International Accounting Standards Board (IASB) has issued a statement about IFRS 16 Leases, noting that companies have two years to implement with a deadline of 1 January 2019. It has also stressed how crucial it is that companies think about their transition choices as early as possible. There are, after all, potentially significant cost savings available depending on which options are chosen.

In fact, companies which have already started implementation of the IFRS 16 leasing standard need to consider not only the cost of compliance but also the potential advantages in applying the standard.