Purpose of the 'Transition Date' for new implementation?

Hi,

We are implementing Property Manager in order to use the solution for IFRS 16.

I'm still confused about the impact of the 'Transition Date'.

What is the purpose / the impact of the 'Transition Date' parameter IF:

you do a new implementation

AND you set the transition date in the system options to 01-JAN-2017

AND you have lease contracts starting in e.g. 2005, 2010, 2012, etc

AND on the lease contracts you set the flag 'Report from Inception' to 'Yes'

Can someone please shed some light in the darkness?

Thanks,

Bart