JDE Real Estate impact of IFRS 16 on Lease Accounting

In Jan 2016 the International Accounting Standards Board (IASB) issued IFRS 16, "Leases", and thereby started a new era of lease accounting.  IFRS 16 is effective for reporting periods on or after 1 Jan 2019. For lessees, most real leases will have to be treated as finance leases (on balance sheet). The creation of a lease will need to generate a right to use asset and a lease liability at the lease's present value. Simplistically in JDE real estate, recurring billing lines will no longer debit rent expense, but will have to be split between an interest expense and a