Occupier-Edge_Ed.5_US

US GAAP - Dual model

LEASE ACCOUNTING CALCULATOR To help you navigate these changes, Cushman & Wakefield has just launched an interactive and easy-to-use Lease Accounting calculator. It is designed to illustrate the impact of leasing decisions under both of the new accounting standards, IFRS 16 and U.S. GAAP Topic 842. The Lease Accounting calculator is a user- friendly tool that will enable you to input the key terms of a lease and calculate the financial impacts under the new rules. If you are negotiating a new lease, you can easily change the lease term, include a break option or adjust the rent review mechanism and re-run the calculations to determine the best financial outcome for your client. You are able to select either the ‘IFRS’ or ‘U.S. GAAP,’ so the tool can be used widely used across the Cushman & Wakefield global business. The Lease Accounting calculator is available online as a part of Cushman & Wakefield’s award winning Global Occupier Metrics website: occupiermetrics.com.

Current Standard

New Standard Topic 842

FINANCE

Finance Leases

Operating Leases

Finance Leases

Operating Leases

-

£ $ €

-

£ $ €

Operating Costs

£ $ €

-

£ $ €

-

Amortization

£ $ €

-

£ $ €

-

Finance Costs

P&L impact

300 400 500 600 200 100 0

Thousands USD

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Interest

Cash

Amortization

IFRS 16 - Single model

Current Standard IAS 17

New Standard IFRS 16

Finance Leases

Operating Leases

All Leases

-

£ $ €

-

Operating Costs

PAUL FRY Partner, Occupier Finance Strategic Consulting EMEA Global Occupier Services paul.fry@cushwake.com

£ $ €

-

£ $ €

Amortization

£ $ €

-

£ $ €

Finance Costs

HANNAH COLEMAN Associate, Occupier Finance Strategic Consulting EMEA Global Occupier Services hannah.coleman@cushwake.com EMMANUEL BENCHETRIT Partner, Head of Strategic Consulting France Global Occupier Services emmanuel.benchetrit@cushwake.com

P&L impact

300 400 500 600 200 100 0

Thousands USD

2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Interest

Cash

Amortization

PETER BROHOSKI Senior Managing Director Global Occupier Services peter.brohoski@cushwake.com

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