Live Webinar
IFRS Lease Accounting en de Vastgoedmarkt DIRK BROUNEN JAY TAHTAH 28 AUGUSTUS 2013, 13:00
Agenda • Welkom, een korte uitleg Dirk Brounen - Hoogleraar vastgoedeconomie, TiasNimbas Business School • IFRS leasing, een stand van zaken Jay Tahtah - Director Capital Markets and Accounting Advisory Services, PwC • IFRS en (corporate) real estate Dirk Brounen • Samenvatting en leestips
Geef uw mening en stel uw vraag!
Agenda
IFRS leasing, een stand van zaken Jay Tahtah Director Capital Markets and Accounting Advisory Services PwC
Proposal to bring all leases on balance sheet has been in the pipeline for more than 15 years In 1996 first discussion paper (McGregor/IASB) In 2009 third discussion paper IASB and FASB with main focus on lessees
1996 1996 1996 2000 1996
May 2013: Re-exposed Exposure Draft for both lessee and lessor accounting, comment period 120 days (until 13 September 2013)
1996 1996 1996 19962009 1996 2010 1996 19962013 1996
In 2000 second discussion paper IASB which suggested removal of off-balance sheet accounting
August 2010: Exposure Draft with proposal on both lessee and lessor accounting
Final IFRS standard
2014?
1996 2017?
Effective date
Existing off balance sheet operating leases and rentals will come on balance sheet of tenants Current IFRS (IAS 17)
Future IFRS (2013 ED)
Many (property) leases are off balance sheet operating leases for lessees
On balance-sheet accounting for all leases (including property leases)
Lessee accounting
• Operating lease (off balance sheet) • Finance lease (on balance seet)
• Balance sheet: • ALL leases on balance sheet as a rightof-use asset and lease liability (except short term leases) • Income statement: • Financing approach (Type A) • Straight line approach (Type B)
Lessor accounting
• Operating lease • Finance lease
• Receivable and residual approach (Type A) • Operating leases approach (Type B)
Different recognition of leases depending on whether underlying asset is Real Estate Lessee TYPE A (mostly equipment / vehicle leases) Balance sheet
TYPE B (mostly real estate leases)
‘On balance sheet’: Right-of-Use asset and lease liability’
Lessor TYPE A (mostly equipment / vehicle leases)
TYPE B (mostly real estate leases)
Lease receivable and residual asset
Continue to report assets being leased (e.g. IAS 40)
Income statement
Front-loaded amortisation and interest expenses (‘financing’)
Straight-line rental expenses
Front-loaded interest income on lease receivable and residual asset and any upfront profit (‘financing’)
Straight-line rental income
Cash flow statement
Principal paid (financing), Interest paid (operating)
Total cash paid operating
Operating
Operating
Most commonly used financial ratios and performance metrics will be redefined The proposed standard impacts: • Leverage and capital ratios • EBITDA/EBIT • EPS • Statement of cash flow Which could further impact: • Loan covenants • Credit agreements • Compensation plans • Internal budgeting
Financial impact is only the tip of iceberg so start thinking about a roadmap for change Financial
Behavioural changes
Operations Stakeholders
Systems and data
Business processes and controls
Thank you
T: +31 (0) 8879 23 945
[email protected]
Jay Tahtah Director
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Agenda
IFRS en (corporate) real estate Dirk Brounen TiasNimbas Business School
Vijf fasen van CREM
1. Ontkenning
Wij zitten niet in vastgoed, Zeckhauser (1983)
2. Boosheid
Veel bedrijfsvastgoed trekt raiders aan, Ambrose (1990)
3. Onderhandeling
Vastgoed is onze vijfde business resource, Joroff (1993)
4. Depressie
Dispositie is waardecreatie, Slovin (1995)
5. Acceptatie
Vraag maar wat je wil weten!
Klaar voor IFRS?
Wie wacht?
Wat vertellen bedrijven over hun vastgoed? transparent V IV
information
III
II
I opaque incidental
timing
structural
Weet hoeveel je in huis hebt!
Nou en?
Aan wie leg je verantwoording af?
S&P 1000 analyse laat zien…. 0,20
Figure 4| Real estate ownership impact on financial value drivers
0,15 0,10 0,05 0,00 tax rate
debt ratio
cost of debt
dividend payout
-0,05
-0,10 -0,15 -0,20 -0,25 RE poor
2
3
4
RE rich
Samenvatting….. • IFRS is echt om de hoek • De laatste mijlpalen worden geslagen • IFRS zorgt voor transparantie
• Daarmee komen financiële effecten van vastgoedbeleid aan het licht….
Vragen van het publiek
Verder…
Leestips:
- The overhaul of lease accounting, PwC - Real Estate Acceptance, Brounen et al. - CoreNet/TiasNimbas Survey - Hotelvastgoed, Barentsen MRE
Leestips
Lestips
Verder…
Leestips:
- The overhaul of lease accounting, PwC - Real Estate Acceptance, Brounen et al. - CoreNet/TiasNimbas Survey - Hotelvastgoed, Barentsen MRE
– Volgend webinar:
gebiedsontwikkeling, nieuwe stijl
– Bezoek onze site:
www.vastgoedlab.nl
– Aanmelden / suggesties:
[email protected]
