For financial years beginning 1 January 2019 or later, your club will have to comply with the new accounting standard AASB 16 – Leases.
In simplified terms, operating leases may now need to be raised on the balance sheet through a right of use asset and lease liability.
Lease payments that previously have been going against the P&L, will now be allocated against the lease liability and amortisation expense will arise with the reduction of the right of use asset.
Clubs with year ends from December 2019 will need to comply with this new standard.
As always, if you would like discuss this article further, our team would be happy to help.
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