WESTJET Strategy Overview
Accounting standards change
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IFRS 16 - Leases
The impact of this change is not incorporated into
WestJet's 2017 Investor Day projections
The revised IFRS standard will replace the existing lease standard and is effective for annual
and interim reporting periods beginning on or after January 1, 2019. We will adopt this
standard on the effective date.
This standard eliminates the classification of leases as either operating leases or finance leases
for a lessee, and instead, all leases are capitalized by recognizing the present value of lease
payments and presenting them as either lease assets or together with property and
equipment.
It also allows for the service component of a lease agreement to be separated from the value
of the asset and thus not reported on the statement of financial position.
We have initiated a scoping exercise to identify the potential number and types of contracts.
that may contain leases.
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