What is Contract Grouping under IFRS 17? Imagine being handed 50,000 active insurance contracts and told to “group them under IFRS 17.” Where do you even start? That’s the challenge many insurers across the region are facing today. If you’ve been following our IFRS 17 series, you already know the big picture—the ‘what’ and ‘why’ of this transformative standard. In our previous post on Get ready for IFRS 17, we introduced the new measurement logic that reshapes how insurers recognize revenue and profit. Now it’s time to roll up our sleeves and tackle the ‘how.’ Here’s the reality: I’ve noticed insurers often struggle with contract grouping. Some try to break…
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Picture this: You’re sitting at your desk, coffee in hand, staring at a spreadsheet full of lease contracts. IFRS 16 looms ahead like a mountain you need to climb. If you’re in Macedonia, that mountain is right in front of you (31.12.2025!). If you’re in Serbia, you’ve already climbed it, but perhaps you’re helping others navigate the path or dealing with lingering questions. Either way, you’re in the right place. Let’s make IFRS 16 first-time adoption less intimidating and more manageable. Why First-Time Adoption Deserves Your Attention Before IFRS 16, operating leases enjoyed a comfortable life off the balance sheet. Those days are over. Now, almost all leases must be…
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If you’ve spent sleepless nights wrestling with discount rates under IFRS 16, you’re not alone. I’ve seen countless finance teams stare at spreadsheets, wondering: “Are we doing this right?” The good news? You’re asking the right questions. The challenging news? There’s no one-size-fits-all answer. Let me walk you through this together, the way I wish someone had explained it to me. Why Does the Discount Rate Matter So Much? Think of the discount rate as the financial heartbeat of your lease accounting. It transforms future lease payments into today’s values, directly impacting your balance sheet, your ratios, and ultimately, how stakeholders view your company’s financial health. A difference of just…
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Getting lease accounting right starts with a simple but critical question: 👉 Is this contract a lease? Under IFRS 16, the answer to that question can have a significant impact on your balance sheet, profit and loss, and even loan covenants. Misclassify a contract, and your balance sheet might tell the wrong story raising unwanted audit questions. The tricky part is that many contracts don’t actually use the word “lease.” Some appear to be service agreements but are actually leases in disguise. Others seem like leases but turn out to be something else entirely. In this article, we’ll walk through how to identify a lease under IFRS 16, why it…
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The key to success lies in viewing IFRS 17 not as a one-time project but as an ongoing commitment to operational excellence and financial transparency. With proper preparation and execution, your organization can leverage this standard to strengthen its market position and create lasting value for all stakeholders.
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If you work in finance or accounting, you've likely heard about IFRS 16 and its significant impact on financial reporting. Whether you're an accountant preparing statements, an auditor reviewing compliance, or a CFO trying to understand the implications for your business, this standard has fundamentally changed how we account for leases. Let's break down what IFRS 16 is, why it matters, and how it affects your daily work.
