What is IFRS 16?

A little about me: I come from the world of finance so i have decided to add my professional writings in my blog as well.

IFRS 16 (International Financial Reporting Standard) is:

  • a new standard for lease accounting which came into effect in January 2019
  • Replacing the existing IAS 17 lease accounting standard
  • It’s been put together by the International Accounting Standards Board (IASB).

Initially it seems slightly complicated – the part which could have been a nightmare, but when I took a closer look it is fairly straightforward to understand, but could be less so to implement.

So My colleague made it so easy for me and here I will try to make it easier for you to walk through the pros, cons and implications for your business accounting and who knows maybe even come up with a suggestion or two to make it simpler still.

What’s different under IFRS 16?

The changes apply to the way accounting is done for lease agreements that companies take out on property, plant and equipment (PPE).

Earlier this was divided into:

  • finance leases and
  • operating leases.

You see operating leases were not included in balance sheets as assets but were simply added to profit and loss accounts.

The prime IFRS 16 change is:

  •  Most leased items should to be included as an asset in the company books, following the new ‘right of use’ model which says:

‘A contract is, or contains, a lease if it conveys the right to control the use of an identified asset for a period of time in exchange for consideration’ (IFRS16, par.9)’

  • The payments you make on the lease agreement have to be reported as a liability on your balance sheet.
  • The accounting can be further complicated :
    • as costs for maintenance,
    • cleaning etc

have to be separated from the main lease payments, if they’re included in them, and reported separately.

  • The depreciation of the asset and interest on the lease liability have to be shown on your profit and loss accounts.
  • Asset shall be recognized under recognition criteria of IAS 16 Property i.e. depreciation or revaluation as consistent with its class of assets. The lease liability would be paid off over time using the actuarial method. Lease payments would reduce the lease liability when paid.

One pluses for IFRS 16 is that, if your company carries a number of lease agreements, it can be possible to combine them into a portfolio, instead of having to individually report them. This can only be done if you can show that there is no financial advantage for you in doing this.

Now the Exceptions to the rule

There are two specific types of lease which don’t come under IFRS 16 and which don’t have to be entered on the balance sheet as an asset:

  1. A lease with a shorter than 12-month term and which does not have an option to buy the leased item at the end of the lease.
  2. Underlying assets has a low value currently defined as less than US$5000.

Why the changes?

The change objective is so the companies all record the leased items as assets in the same way, making their existence more transparent financially.

In the past, some businesses could or would hold large liabilities on their operating leases but keep them off the balance sheets, giving a twisted view of their overall financial status.

How does IFRS 16 apply to my business?

The changes will only apply to:

  • a PLC or a company that already reports to IFRS

IFRS 16 disadvantages

  • Businesses leasing assets will appear from their balance sheets to be more asset-rich, but they will also appear to carry a bigger debt burden
  • Will affect your key accounting and financial ratios. This may decrease the firm’s potential attractiveness to investors and its ability to raise finance.
  • It might also lead to problems if you already have banking pledges in place which specify, that a exact level of profitability must be maintained for existing bank agreements to continue – it could affect funding

A simplified summary

The major changes to your financial reporting needed to comply with IFRS 16:

  • The requirement to identify and show on your balance sheet the right to use an item as an asset and your commitment to make payments for it as a liability.
  • The need to collect all the information on the leases
    •  term,
    • rental payable,
    • end-of-term options etc.

and then remove and show separately the payments which are not applicable to IFRS 16.

Battle of the Bulge

Creating My Own Stepping Stones

the Battle of the bulge is not easy: we become moody, edgy, irritable, touchy and so much more. So its easy to give up and fall of the wagon. That is why a support group is necessary.
So I have been Lucky that I have my own little support group with me, its been a bumpy ride but we are getting there.
So when I started my weight loss journey and decided to join the GYM my mom laughed as did the immediate family who are close to me. You see I had done this so many times no one thought I would manage to pull it off.
Don’t get me wrong, they were tired of my joining the GYM and not going through and they all thought “ok another failed attempt” But this time what no one realized was that I have had blessings sent to me (everything happens for a reason)

BEFOREBEFORE

TODAYTODAY

Shrinking Arabs Grow

We are growing #shrinkingarabsgrow “THE GOAL IS TO POSITIVELY IMPACT A HANDFUL IF NOT MORE PEOPLE MEN, WOMEN & CHILDREN THIS YEAR. TOGETHER, WE CAN BECOME THE BEST VERSIONS OF OURSELVES!” #FIGHTOBIESITY
DM @shrinkingarab IF YOU WANT TO BE PART OF THIS JOURNEY. 😍 #BETHECHANGE #AHEALTHIERYOU

 

#justdoit #weightloss #weightlossjourney #awareness #muscat #oman #wellness #fitness #healthylifestyle #healthyfood #cardio #workingout #fashion #beauty #fitmom #shrinkingarab #health #fattofit #fitnessjourney #fitfam

Intermittent Fasting – An Eating Pattern

So a while back the my Coach recommended that I try this diet that you have to fast in, i didn’t really listen and ignored it.

Just before Ramadan started I started following some really amazing people who did the whole fat to fit transformation (weight loss) with and without the gastric banding etc. So One of them mentioned it to me, this made me do some research and discovered that its called Intermittent Fasting.

What is Intermittent Fasting?

Intermittent fasting is a term for eating between periods of fasting and eating. (i hope this makes sense)

There is nothing about which foods you should eat, but actually when you should eat and that they have to be low calorie.

This is what worked for me and in 1 week they change was apparent even to those who saw me everyday.

Do I recommend it ? YES!!

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 I AM THE CHANGE 

Food Habits that I Use

I am sharing some of my food habits that I have made that have helped and still helping on my weight loss journey:

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GRAPEFRUITS

Some compounds in grapefruits help your body use insulin more efficiently.

Keeps your blood sugar in check

Also help burn calories.

TIP: I usually mix it in my green salad with a touch of balsamic vinaigrette dressing that I make at home. NO JUICES!!

Olive oil

OLIVE OIL

 Get rid the butter, the cooking spray
Replace it with olive oil. Like fish oil.
Olive Oil is full of omega-3 fatty acids that help keep  the stomach less bloated, the brain, and other organs working more efficiently, & helps regulate the appetite
TIP: DO NOT over heat the olive oil in the pan, because it burns and then you loose all the effective properties of it

 BANANASbanana-cortada-fruta-0716-630x350-620x330

Generally start my day with a banana
It helps the metabolism due to all the potassium in them. “Potassium helps your body regulate minerals and fluids in and out of your cells”
TIP: Keeps you full, I blend it with my milk and use my protein powder to make pancakes

 

BerryWorld-Mixed-Berries

BERRIES

Did you know that  berries are high in fiber (up to 8 to 9 grams a cup)
also have antioxidants, and contain less sugar than most fruits.
TIP: The combination of all the berries makes them a satisfying and healthy choice and sometimes I blend it with a banana and fat free milk

 

 

“BE THE CHANGE”

Support Group Necessity – Reach Out

the Battle of the bulge is not easy:  we become moody, edgy, irritable, touchy and so much more. So its easy to give up and fall of the wagon. That is why a support group is necessary.

So I have been Lucky that I have my own little support group with me, its been a bumpy ride but we are getting there.

So when I started my weight loss journey and decided to join the GYM my mom laughed as did the immediate family who are close to me. You see I had done this so many times  no one thought I would manage to pull it off.

Don’t get me wrong, they were tired of my joining the GYM and not going through and they all thought “ok another failed attempt” But this time what no one realized was that I have had blessings sent to me (everything happens for a reason) :

  • My Son Noah – my Miracle (A gift from God);

  • A Girl Called Nadia Khan from London

    • there is so much I can say and yet it would not be enough (she is another beautiful soul that has walked the walk with me & still is)

    • she joined the GYM with me

    • she came with me relentlessly for months & due to busy life schedules we try to work out together when possible

    • stood by me through it all – a backbone

  • another called Christin from Berlin – but she’s more Omani now 🙂

    • a force to reckon with as well

    • my rock & backbone

    • another beautiful soul who has walked the walk & still is

  • and sitting in Budapest is my Sister Anna Maria who lives on the 4th floor, without a lift (you can imagine how many times I cursed her coz I had walk up 94 steps and down 94 steps) 😉

    • my globe-trotter

    • someone who has stood by me from across the continents

    • another soul sent to me, a force to be reckoned with and my pillars of strength

the above was how it started, along the way the circle increased

  • my Coaches

  • Mum & Dad, they started to believe (they are my parents always stood by me, but as far as loosing weight was concerned it was hard for them to believe)

  • Princess Ash & Khali (uncle) Shez from Manchester – my cousins

  • Hilal Al Habsi – Someone who Believes & true to his word

  • Ahmed Al Omairi – training us now a friend & brother

  • Eva Stanley Jones – Making it Happen, like a breath of Fresh Air

  • the gyms

  • my online supporters

  • those who only say they support – talk is cheap 

There are those that would like to remain anonymous & those that breezed in and out of my life, bringing or teaching us something positive in life.

Everyone needs support something or someone to fall back on … as the shrinking arab feel free to contact me for that, I know how it feels:

  • email: info@thechrinkingarab.com

  • instagram: theshrinkingarab

“Creating My Own Stepping Stones” 

#nike At a Sexy Pace

So I am flat footed, finding the right shoes has always been a problem for me, and being the weight that I used to be it wasn’t easy.

Comfort before fashion has always been my thing. I will not compromise on self comfort.

So in brief if I am not comfortable I won’t wear it fashion or not.

So when I started working out and decided a lifestyle change is needed there were a few brands that of sports shoes that I tried and ended up settling for #Nike.

These are the reasons behind my love 😍 for #nike:

  • Comfort – I feel like my feet are on pillows

  • They have been good to my knees 😊

  • The science behind is well throughout

#nike now needs to come up with a mama and son edition coz my munchkin wants to wear #Nike’s like mama

The accessories are also good; I use the socks and gloves.

So my advice if your buying your #nike in Muscat Oman go directly to the Muscat City Center Brand Shop’s of #Nike. They really know how to understand a persons feet and needs, the others don’t.

I will be moving on to my 4th pair in less than 8 months

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“Sexy Pace”