Module I· Lease Accounting (IFRS 16 vs. HGB)Basic
Question
What is the main difference between IFRS 16 and HGB lease accounting?
Answer
| IFRS 16 (since 2019) | HGB §246 | |
|---|---|---|
| Lease treatment | Almost all leases >12 months capitalized | Operating lease through the income statement (no balance-sheet effect) |
| Balance sheet | RoU asset + lease liability | None, unless economic ownership transfers |
| Income statement | D&A + interest expense | Rent expense |
| Operating-lease classification | Abolished for lessees | Remains |
Consequence
- IFRS balance-sheet total is higher than under HGB.
- IFRS EBITDA is higher because the lease is removed from operating expense and split into D&A plus interest.
Pitch tip
When a middle-market company moves from HGB to IFRS, expect balance-sheet total +10-25%, EBITDA +3-8%, and net debt materially higher. This is a classic trap in HGB-vs.-IFRS comps.