Freeze! IFRS 16 has been finalised

June 2016 | Newsletter/briefing

Major accounting changes will often have an impact on financial definitions and ratios used in loan and other finance documentation. Significant changes to lease accounting rules have been on the IASB’s agenda for many years. New IFRS 16 was finally published in January and is mandatory for accounting periods starting on or after 1 January 2019.

This update for treasurers outlines:

  • the aspects of LMA-based loan documentation in current usage that are likely to be affected by the transition to IFRS 16
  • the changes the LMA has recently made to its recommended forms of facility agreement in anticipation of the new standard
  • how borrowers might wish to approach the issues to which it gives rise

This briefing is based on an article that appeared in the April 2016 edition of Butterworth's Journal of International Banking and Financial Law


Stephen Powell (partner), Kathrine Meloni (Special Adviser)

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