IFRS 16, Accounting for Leases in the Aviation Industry (Classroom, 2 days)

 Upon completing this course you will be able to:

• Analyze arrangements to determine whether they contain leases
• Determine what interest rate is used to discount the lease payments
• Apply the standard to lease extension, cancellation and mutual agreement options
• Account for restoration, maintenance and leasing costs?
• Account for contracts at airports for office space, hangars, lounges, gate areas, and other facilities
• Understand how to hedge the foreign currency exposure on the financial liability
• Account for contract modifications
• Account for lease incentives
• Understand how to account for contracts based on variables rates like LIBOR.
• Understand how IFRS and US GAAP differ on leases
• Understand the transitional provision options

Study key International Financial Reporting Standards (IFRS) 16, Leases, used for preparing financial statements in the airline industry, which is effective for annual periods beginning on or after 1 January 2019. Make sure you’re prepared as some airlines are adopting the standard early in 2018.

This two-day course covers the implementation issues faced by airlines, shipping companies or other transportation companies, and is also relevant to other industries. Using case studies, examples and exercises, focused on aircraft, property and airport service contracts, our specialist instructor explains and illustrates all of the important issues.

This course is available at IATA Training Centers, Regional Training Partner locations, and on-demand as in-house training.

Course format
This classroom course provides 2 days (16 hours) of instruction delivered by an official IATA Instructor.
Student performance will be based on an assessment

Prerequisites
There are no prerequisites for this course
Recommended level is Entry-level and Management
The recommended level of language proficiency is ICAO Operational Level 4 for courses in English or the equivalent level for other languages

Course content

• Scope of the standard
• Recognition exemptions for low cost immaterial and short term leases
• Identifying leases in an arrangement
• Initial and subsequent measurement of the ROU Asset and Financial Liability
• Separating components of an arrangement into lease and service agreement
• Lessor accounting review
• Sale and leaseback transactions
• Presentation requirements
• Disclosure requirements
• Transitional provision options

Activities

• Exercises including calculations and journal entries
• Application of the standard to complex scenarios
• Case studies on key implementation issues
• Group discussions of complex issues

 Certificate awarded
An IATA Certificate of Completion is awarded to participants obtaining a grade of 70% or higher on all exercises and exams. A special distinction is awarded to participants obtaining a grade of 90% or higher.