Read this article to learn:
- What the tower industry needs to know about the accounting standards change
- The impact of IFRS 16 Leases on all the drivers for tower monetisation
- How will IFRS 16 Leases affect tower carve outs versus sale and leasebacks?
- Why the contractual terms concerning break clauses and renewals will be even more critical
- Will the conversion of Master Lease Agreements to Master Service Agreements enable MNOs to avoid bringing towerco fees onto the balance sheet?
With effect from 1 January 2019, new international lease accounting rules will remove the distinction between finance leases and operating leases, requiring conventional tower leases to be brought on to MNO balance sheets. At first glance, this appears to compromise the sale and leaseback of towers as an option for MNOs seeking to delever, but…