Publication

IFRS News Special Edition on IFRS 16

The IASB has published IFRS 16 ‘Leases’, completing its long-running project to overhaul lease accounting.

IFRS 16 will require lessees to account for leases ‘on-balance sheet’ by recognising a ‘right-of-use’ asset and a lease liability. For many businesses, however, exemptions for short-term leases and leases of low value assets will greatly reduce
the impact.

IFRS 16 also:

  • changes the definition of a lease;
  • sets requirements on how to account for the asset and liability, including complexities such as non-lease elements, variable lease payments and option periods;
  • changes the accounting for sale and leaseback arrangements;
  • largely retains IAS 17’s approach to lessor accounting; and
  • introduces new disclosure requirements.
Read the full briefing
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