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.
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