Shadowing Practice: The Fundamentals of IFRS 16 - Learn English Speaking with YouTube

C1
IFRS 16 covers leases.
⏸ Paused
47 sentences
If sentences are too short or too long, click Edit to adjust them.
1
IFRS 16 covers leases.
2
Now there are many aspects to lease accounting
3
and this video is just going to look at the most common for now
4
which is lessee accounting which is what happens when you pay to lease an asset.
5
Now traditionally
6
if you were renting an asset let's say you were renting
7
a high street premises for five years you would just expense that as a straight line over the period.
8
So If you were renting it for five years,
9
you would just have an annual expense of whatever your rent was each year.
10
You would have no assets and no liability.
11
That was nice and simple.
12
But the problem was it kind of understated the liabilities in a company's statement of financial position
13
because you were committed to pay that for five years.
14
And they had to be disclosed in the notes to the accounts.
15
But the average user might not actually see the liability unless they dig into the lease notes.
16
So IFRS 16 says well if you're using an asset for five years
17
and you're leasing it for five years actually you should have an asset
18
which is referred to as a right of use asset to reflect the fact
19
that you don't own the asset but you do control it
20
and you do have the ability to use that for a long period
21
so say five years you would have
22
that asset you would depreciate it over the lease term
23
but also you would then have a liability
24
and you would show the full payments for
25
that five years discounted to present value
26
so again users could see here's what I'm committed to
27
and that's really common for high street retailers
28
and a lot of them ended up putting a lot of liabilities on their books
29
because it really showed the users here's the length of the
30
lease here's what we're committed to here's how much we're actually
31
going to have to pay whereas previously users would have had to assess that deep into the notes to the financial statements.
32
Now the introduction of the standard could lead to a few maybe unintended consequences.
33
We may well see firms enter into shorter lease agreements so that the liabilities they record are actually lower.
34
It might not be the best thing for the business
35
but it does show a lower level of debt on their statement of financial position.
36
Also bringing these assets in as right of use assets forces them to consider an impairment review.
37
So we'll have to consider the value of the asset,
38
which will be the present value of what you're paying,
39
and really compare that to the value in use,
40
so the cash flows the asset is expected to generate.
41
So we might actually see,
42
particularly with high street retailers,
43
more of a focus on impairment with those right of use assets.
44
So IFRS 16 really brings everything on the statement of financial position rather than relying on users digging into their notes.
45
But it will increase liabilities,
46
it does increase assets,
47
and actually firms will maybe change their decision making and enter to short leases as a result of that.

Download App

AI scoring for every sentence you speak

Scan To Download
Scan To Download
Download on theApp Store
Get it onGoogle Play
TRENDING

Popular

Why practice speaking with this video?

Engaging with the video "The Fundamentals of IFRS 16" offers English learners an excellent opportunity to enhance their oral communication skills in a business context. By focusing on lessee accounting, this video provides not only technical vocabulary but also practical expressions that are useful in discussions about accounting and finance.

Practicing speaking along with this video can help you develop clarity in expressing complex ideas related to finance. Use a shadowing app to mimic the speaker's intonation and rhythm. This technique, often referred to as shadowspeak, enables you to internalize the language used in professional settings. As you imitate the speaker, focus on conveying your understanding of the concepts discussed, such as lease liabilities and right of use assets. This will improve your fluency and confidence when discussing similar topics in real-life situations.

Grammar & Expressions in Context

Several grammatical structures and expressions are highlighted in the transcript that are particularly relevant for learners aiming to excel in English speaking:

  • Conditional clauses: Phrases like "if you were renting an asset" illustrate how to talk about hypothetical situations. Practice using similar structures to enhance your conversational skills.
  • Present continuous tense: The use of "is referred to as" demonstrates how to describe ongoing actions or definitions. Mimicking such phrases can facilitate smooth discussions about current topics.
  • Passive voice: The phrase "were disclosed in the notes" involves passive construction, which is common in formal contexts. Understanding how to use the passive voice will aid in articulating industry practices without focusing on the subject.
  • Descriptive adjectives: Descriptors like "common" and "unintended" provide a way to express opinions about trends and changes. Incorporating such adjectives can make your speech more engaging and precise.

Common Pronunciation Traps

As you practice speaking, be aware of specific pronunciation challenges that may arise from the vocabulary in this video. Here are some tricky words and phrases:

  • Liabilities: Pay attention to the emphasis on the second syllable (li-a-BIL-i-ties) to ensure clarity when discussing financial terms.
  • Depreciate: This word can be confusing. Make sure to pronounce it as de-PRE-ci-ate, focusing on the rhythm of the syllables.
  • Present value: The phrase can be mispronounced. Practice saying it clearly as PRES-ent VAL-you, ensuring you stress both parts equally.

Utilizing a shadow speak approach, where you repeat after the speaker, can significantly improve your pronunciation and overall delivery. Remember, consistent practice, especially with a shadowing app, will help solidify your skills in finance-related conversations.

What is the Shadowing Technique?

Shadowing is a science-backed language learning technique originally developed for professional interpreter training and popularized by polyglot Dr. Alexander Arguelles. The method is simple but powerful: you listen to native English audio and immediately repeat it out loud — like a shadow following the speaker with just a 1–2 second delay. Unlike passive listening or grammar drills, shadowing forces your brain and mouth muscles to simultaneously process and reproduce real speech patterns. Research shows it significantly improves pronunciation accuracy, intonation, rhythm, connected speech, listening comprehension, and speaking fluency — making it one of the most effective methods for IELTS Speaking preparation and real-world English communication.

☕ Buy us a coffee