If your auditor has required you to carry out an annual valuation of your assets classified as fixed assets, investments and stocks in order to determine the real assets of your company, Instituto de Valoraciones, as an independent expert, can prepare an accounting valuation, based on the rules of the General Accounting Plan and the most suitable methodology depending on each property, in order to ascertain whether there is a real loss of value.
IFRS 16, the new regulation on leasing contracts:
IV offers advisory services to companies regarding the impact of the new financial, fiscal, accounting, real estate or legal rules.
The services offered by IV include:
- Valuation of lease agreements
- Impact assessment
- Determination of the legal period of leases
- Global impact on your Core Business
What is IFRS 16?
IFRS 16 cuts out the dual accounting model for lessees that distinguishes between on-balance sheet finance leases and operating leases for which recognition of future lease payments is not required. Instead, a single model is developed within the balance sheet, which is similar to the current financial lease.
In the case of the lessor, the current practice is maintained – i.e. lessors continue to classify leases as finance and operating leases.
Main impacts of the new standard
For lessees, the lease becomes a liability and an equivalent asset, the right to use the property that is the subject of the lease. Therefore, the size of the balance sheet will increase with new assets, but its indebtedness will also increase.
Impacts go beyond the balance sheet. Changes will also occur during the term of the lease. In particular, companies should apply an early pattern of expense recognition to most contracts, even if they pay constant annual rents.
All companies will need to assess the magnitude of the impacts of the standard so that they can understand the implications for their business activity. Areas of focus may include:
- The effect of the standard on financial results
- Implementation costs
- The effect of proposed changes to business practices
- Mortgage guarantees
- Market values
- IVS and RICS valuations
- Market studies
- Company valuations
- Cost consulting
- Project monitoring
- Energy Performance Certificates
- Reports for Servicers
- Evaluation reports