So, it's finally here - on 1st January, IFRS 16 Leases came into effect in Europe and beyond. However, in the materials handling industry, where forklift leasing is common, there's still some uncertainty about what the new regulations mean, and how financial reporting will change.
IFRS 16 Leases is approaching fast, and if you lease forklift trucks in your business, the way you report your finances will have to change after the deadline on 1 January 2019.
If you’re looking to get a new forklift truck which will provide you with years of reliable service, rather than just a short-term hire forklift to help you deal with periods of high demand, your first thought may be to purchase one outright.
A common question which often pops up when big capital acquisitions are being considered is - 'should we buy or lease?'
If you're looking to bring on new machines on a long-term basis, both options have their advantages, and bring many of the same benefits — but depending on the nature of your company and what your daily challenges are, one solution will likely be more beneficial.
On 1 January 2019, IFRS 16 Leases will come into effect, and it's going to have a big impact on the material handling industry.