Signal Lab

AASB 16 Lease BS Impact

An AASB 16 (≈ IFRS 16) lease capitalisation model — ROU asset and lease liability.
It measures PV of payments at the IBR and the hit to ratios, NWC, and net debt.
Use it to preview covenant and liquidity optics before you sign or modify a lease.

Balance Sheet Cash Risk What-ifs

Signal Lab · Model

AASB 16 Lease BS Impact

PV (present value) of lease payments at the IBR (incremental borrowing rate) → opening liability and ROU. Current vs non-current split; before/after current ratio, NWC (net working capital), and net debt. Full amort schedule is Excel-only.

Default AU sample is tuned to illustrate the covenant-warning path (not a bug) — replace with your actuals. Not financial advice. Lender defs vary. Payments modelled as an ordinary annuity (end of period), not annuity-due.

Lease terms and pre-AASB 16 balances

Payment × term × frequency discounted at IBR. Persist locally · Jump to impact

Pre-AASB 16 balance sheet (for before/after ratios)

Optional covenant warning threshold.

ROU, liability split, before/after ratios

Opening ROU = opening liability when no IDC (initial direct costs)/incentives. Full amort in Excel export.

Equations

  • Opening lease liability = PV (present value) of remaining lease payments at periodic IBR (ordinary annuity — end of period)
  • ROU (start) = Opening liability (no initial direct costs / incentives in this sketch)
  • Current lease liability ≈ principal portion of payments due ≤ 12 months
  • After current ratio = CA ÷ (CL + current lease liab) · After NWC = CA − (CL + current lease)
  • Net debt incl. leases = Net debt ex-lease + total lease liability

Full period-by-period amortisation schedule ships in the Excel workbook — this page shows opening PV and the ≤12-month current split only.

How this is calculated
  • Periodic rate = IBR ÷ payments-per-year. Periods = term months × (payments-per-year ÷ 12).
  • Annuity PV = PMT × [1 − (1+r)−n] ÷ r (or PMT × n if r = 0).
  • Current portion walks the first 12 months of principal reduction on an amortising lease.
  • AU AASB 16 aligns with IFRS 16 measurement for this illustrative desk model.

Illustrative — not financial advice. Measurement exemptions and reassessments omitted.

What-if IBR / term

IBR ±bps and term months — live PV and after ratios.

Sensitivity

Take it with you

Download a prompt, export the Excel workbook, or email yourself.

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