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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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…
