• IFRS AT A GLANCE (IFRS 16 Lease)
Article:

IFRS AT A GLANCE (IFRS 16 Lease)

13 March 2019

The development of a new leases standard was originally a joint project between the IASB and FASB, and though they will not issue converged standards, both will bring leases on balance sheet for lessees. IFRS 16 removes the distinction between operating (“off balance sheet”) and finance (“on balance sheet”) leases for lessees. This will result in significant changes for lessees’ financial statements, including:

  • All leases being recorded on balance sheet (except, as an option, for low value and short-term leases)
  • Increased disclosure about the entity’s leasing activities including tables for the types of assets leased