IFRS 16 Leases
27 February 2018
In January 2016 the IASB published IFRS 16 Leases, which is effective for accounting periods beginning on or after 1 January 2019. Early adoption is permitted, but only if IFRS 15 Revenue from Contracts with Customers has also been adopted. IFRS 16 brings significant changes in accounting requirements for lease accounting, primarily for lessees, resulting in lease liabilities and right-of-use assets being recognised on balance sheet for lease contracts currently classified as operating leases. Entities applying IFRS will also need to pay careful attention to whether wider service contracts contain lease components. IFRS 16 has been developed to replace the existing suite of standards and interpretations on leases, notably IAS 17.
This BDO IFRS In practice details the requirements of IFRS 16 and includes numerous practical examples.