New accounting rules that take effect in January are predicted to increase demand for flexible offices space. Labour issues, licencing issues, restrict the ease with which co-working space can be used," he said. IFRS 16 requires companies to include leases longer than 12 months and worth $5,000 or more as liabilities on their balance sheets. That will result in fewer firms committing to longer leases, Colliers International Regional Director Ian Albert told the Cityscape Global conference in Dubai. The new rules, which come into force Jan. 1, also require businesses with a turnover of at least $10 million per year to report revenue from fixed assets such as real estate and equipment rather than depreciation.
New accounting rules that take effect in January are predicted to increase demand for flexible offices space. IFRS 16 requires companies to include leases longer than 12 months and worth $5,000 or more as liabilities on their balance sheets. That will result in fewer firms committing to longer leases, Colliers International Regional Director Ian Albert told the Cityscape Global conference in Dubai. The new rules, which come into force Jan. 1, also require businesses with a turnover of at least $10 million per year to report revenue from fixed assets such as real estate and equipment rather than depreciation.