IFRS 19 relates to wages and benefits.
IFRS 16 is the lease side of it.
Company that I keep are very interested in all sorts of
transport companies.
Consider the magic of the so called 'Low Cost Airline'
- If an airline leases its fleet, there is little depreciation.
- Incorrectly classified allows the airline to add the 'value' of the aircraft
- WITHOUT the corresponding debt associated with it.
This is a very interesting concept. It is like having a $100,000 personal loan, and adding the $100,000 to your 'assets' but not mentioning the payments!
'Low Cost Airlines' are sweating this change as the correct disclosure, accounting for and allocation of charges will wipe the 'financial alchemy' that can be a leased fleet airline. Think of Air Asia, JQ etc.