Module I· Interview Essentials AccountingAdvanced

Question

IFRS 16 first-time adoption: operating lease with 100 annual rent, 10 years remaining. Three-statement impact and EBITDA multiple effect?

Answer

IFRS 16 increases EBITDA and net debt: rent becomes D&A plus interest, and lease liability enters the balance sheet.

Deep diveShow more details

Multiple effect is optical unless EV and EBITDA are both lease-adjusted consistently.

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