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Impact of new lease accounting standard goes beyond financial reporting


While the new standard does not change the overall cash flows, it does change the financial and operational ratios, and volatility in earnings.

As Ind AS 116, the new accounting standard for leases, came into force from April 1, 2019,  investors and analysts struggle to understand the impact of this standard on a wide range of sectors, according to an analysis done by a group of CFOs.

"The theory is simple to understand, but complex to fathom when they (investors) look at the quantum of impact on the financials," an analysis by the CFO Board noted with regard to the ...


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