Are you aware of new accounting guidelines for income statements and balance sheets under IFRS 16?
The airlines industry will be hugely impacted under IFRS 16 – the new guidelines to replace IAS 17 published by the International Accounting Standard Board (IASB) in January 2016. The main changes under IFRS 16 relate to how leases are treated on companies’ balance sheets and income statements. As the majority of airlines lease assets, it’s crucial they familiarize themselves with this new accounting standard due to come into effect from January 2019.
Under IFRS 16, what will be the main changes to a company’s balance sheet?
IFRS 16 ends the classification of leases as either operating leases or finance leases for a lessee.
According to the new standard, all leases are treated in a similar way to finance leases applying the IAS 17 guideline.
Leases are capitalized by acknowledgment of the current value of the lease payments and showing them either as lease assets or as property or equipment.
If lease payments are made over time, the financial liability is charted and future lease payments are included.
What will be the main effect of IFRS 16?
The main effect of the new requirements will be a significant increase in lease assets and financial liabilities.
What are the main benefits of IFRS 16?
It’s beneficial because companies will be better able to determine whether a given contract is a lease or a service one and how it should be reflected in financial statements.
It will result in a more realistic image of a company’s assets and liabilities and more transparency around a company’s financial leverage and capital employed.
It will also provide a broader representation of data than was available under IAS 17, thereby giving superior insight into a company’s operations.
It will provide more industry transparency regarding leases as companies will measure assets and liabilities arising from leases more accurately.
Finally, it will facilitate more effective capital allocation by enabling better credit and investment decision-making by companies and investors.
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Marketing Team UAS International Trip Support | - 11/27/2018
Mitch Launius
Instructor Pilot for 30 West IP
Mitch is the CEO of 30 West IP where he is also an instructor providing pilot training on international procedures. With an illustrious career of over 34 years in the cockpit, Mitch has acquired over 13,000 hours of flight time flying worldwide, with over 9,000 hours of this in Challenger and Gulfstream aircraft. He is an experienced safety officer and was also an IS-BAO project manager for a fortune 500 flight department. He has presented on Safety and Operations topics at the NBAA International Operators Conference and the Canadian Business Aviation Association Convention and is currently on the NBAA International Operators Committee and serves as the North Atlantic Regional Lead. Mitch is also a member of an FAA working group on General Aviation International Authorizations and Tabletop Exercises (GIATE). He was recently selected to represent IBAC as a member of the ICAO Personal Training and Licensing Panel (PTLP) and was also recently named as a 2020 recipient of the NBAA Tony Kern Professionalism in Aviation Award for his contribution to the business aviation community.
Henry ‘Duke’ LeDuc
Director Of Operations, Americas, UAS International Trip Support
Duke has been a dearly respected member of UAS Americas team and the UAS global family for more than five years. A safety-oriented, FAA-licensed aircraft dispatcher, he oversees all of the operations of the elite UAS Operations Team. With twenty-five years of experience in aviation overall with more than fifteen years of experience in international flight planning and VVIP trip coordination, he is responsible for the development of the dispatch training program and involved in the strategic development of UAS Americas. With a myriad of rich aviation experience behind him, he has extensive experience in worldwide operations with both corporate and charter environments, including seven years as Operations/Dispatch Manager in an industry-leading, Fortune 500, IS-BAO Stage III Certified corporate flight department. Duke is frequently asked shares his knowledge at major industry events and is currently serving on the NBAA’s International Operators Conference (IOC) Planning Committee.
Dudley King
President and Founder, FlightBridge
Dudley is the Founder and President of FlightBridge, which he established in 2011 and has been focused on technology solutions for the private aviation industry since 2006. Since he graduated from Dartmouth in 1988, he has worked with an array of companies listed anywhere from VentureWire to the Fortune 100. A rare blend of executive, entrepreneur, and consultant, Dudley’s executive roles have included acting CIO positions for several companies and tech advisory services to CEOs trying to rebuild their technology organizations or looking for an external, professional point of view. Highly skilled at deeply understanding his customer’s business challenges and drawing from a long and varied experience in information technology services, Dudley excels at designing technology solutions to solve their problems.
Dr. Paulo Alves
Global Medical Director, Aviation Health, Medaire
Paulo has extensive experience in medical advisory in the aviation industry. As a cardiologist, he provides technical guidance and analysis for MedAire’s MedLink medical advisory service and is MedAire’s liaison with civil aviation regulators and industry associations. Paulo worked with Varig Brazilian Airlines for 23 years, 10 of which were spent as General Medical Manager. A member of the MedAire Medical Advisory Board, Paulo is also President of the Ibero-American Aerospace Medical Association, a member of the International Academy of Aerospace Medicine, a member of the National Business Aviation Association (NBAA) Safety Committee, a Fellow of the Aerospace Medical Association (AsMA), and a Fellow of the Civil Aviation Medical Association. Throughout his illustrious career, Paulo has held industry leadership roles including Chairperson of the AsMA’s Air Transport Medicine Committee, President of the Airlines Medical Directors Association, President of the Brazilian Society of Aerospace Medicine and was a member of the IATA Medical Advisory Group from 2002 to 2006.
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