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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.
This publication provides an overview of IFRS 16 and how it affects the financial statements of the lessee and the lessor. It includes examples and insights. The publication begins with an overview of the lessee and lessor accounting models, summarising the impact of IFRS 16 on their respective financial statements.
Applying the lease modification requirements in IFRS 16 to future lease payments under the lease. The rent concession described in the request meets the definition of a lease modification in IFRS 16.
IFRS 16 introduces a single lessee accounting model and requires a lessee to recognise assets and liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value.
Reasons and Rationale of IFRS 16. The current IAS 17 classifies leases into one of two categories: namely finance leases and operating leases. The classification is based largely on the extent to which significant risks and rewards incidental to ownership of a leased asset lie.
Overview. IFRS 16 specifies how an IFRS reporter will recognise, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring lessees to recognise assets and liabilities for all leases unless the lease term is 12 months or less or the underlying asset has a low value.
6 December 2020 Applying IFRS - A closer look at IFRS 16 Leases A lessee is not required to apply IFRS 16 to leases of intangible assets not covered by the exceptions above.
Mar 31, 2021 · Our IFRS 16 – An overview (PDF 2 MB) publication introduces the accounting models for lessees and lessors. It then takes a deeper dive into critical areas such as lease definition and accounting for lease modifications.
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.
IFRS 16 Leases. This Basis for Conclusions accompanies, but is not part of, IFRS 16. Introduction. This Basis for Conclusions summarises the IASB’s considerations in developing IFRS 16 . Leases. It includes the reasons for accepting particular views and rejecting others. Individual Board members gave greater weight to some factors than to others.
