The objective of IFRS 16 is to report information that (a) faithfully represents lease transactions and (b) provides a basis for users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases.

IFRS 16 Leases has now been successfully adopted by companies reporting under IFRS® Standards. It is the new normal for lease accounting around the world. IFRS 16 had a significant impact on the financial statements of lessees with ‘big-ticket’ leases, from retailers to banks to media companies.

IFRS 16 replaces IAS 17, IFRIC 4, SIC-15 and SIC-27. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. In May 2020 the Board issued Covid-19-Related Rent Concessions, which amended IFRS 16.

We have been releasing our in-depth application guidance on IFRS 16 Leases in manageable chunks, one chapter at a time. Each one focuses on a particular aspect and includes explanations of the requirements and examples showing them in practice, to help you apply the new standard.

Under IFRS 16, most lease contracts result in the recognition of right-of-use-assets and lease liabilities in the statement of financial position. Therefore, leasing assets under IFRS 16 without using the exemptions related to short-term or low value leases has significant impacts on key accounting ratios of lessees – they will reduce return ...

2024年8月19日 · Read a summary of IFRS 16 lease accounting with a full example, journal entries, and an explanation of disclosure requirements.

IFRS 16 requires separate presentation of the interest expense on the lease liability and the depreciation charge for the right-of-use asset in the lessee’s statement of profit or loss and other comprehensive income.

2025年1月14日 · IFRS 16 introduces a framework for lease accounting, transforming how leases are recognized and measured. Lessees must bring most leases onto the balance sheet, recognizing a right-of-use asset and a corresponding lease liability.

2025年3月2日 · IFRS 16 requires lessees to recognise most leases on the balance sheet as a right-of-use (ROU) asset and lease liability, shifting from off-balance-sheet treatment. In the ACCA SBR exam, you’ll calculate these amounts, assess their impact, and apply IFRS principles to financial reporting.

“IFRS 16 will bring most leases on-balance sheet from 2019. All companies that lease assets for use in their business will see an increase in reported assets and liabilities. This will affect a wide variety of sectors, from airlines that lease aircraft to retailers that lease stores.