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IFRS 16: Lease accounting

Effective for accounting periods beginning on or after 1 January 2019.

The IASB published the new IFRS 16 lease standard, in order to avoid 'off-balance sheet' financing. IFRS 16 requires lessees to recognise most leases on the balance sheet. The new standard is a significant change in approach from current IFRS standard.

  • IFRS 16 is effective for accounting periods beginning on or after 1 January 2019.
  • Lessees will have a single accounting model for all leases.
  • IFRS 16 will introduce additional disclosures requirements.

Scope IFRS 16

IFRS 16 applies to all leases, including leases of right-of-use assets in a sublease and rental agreements, except the following:

  • leases to explore for, or use, minerals, oil, natural gas, similar non-regenerative resources;
  • leases of biological assets within the scope of IAS 41;
  • service concession arrangements within the cope of IFRIC 12;
  • licences of intellectual property granted by a lessor within the scope of IFRS 15;
  • rights held by lessee under licensing agreements within the scope of IAS 38.

Would you like to know more about IFRS (16)? Download the publication. Or contact our IFRS services specialists.

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