IFRS 16 — Leases

Ef­fec­tive date:

Annual reporting periods be­gin­ning on or af­ter January 1, 2019. Ear­lier ap­pli­ca­tion is per­mit­ted, if IFRS 15, Revenue from Contracts with Customers, has also been applied.

Pub­lished by the IASB:

January 2016

In­cluded in Part I of CPA Canada Hand­book:

June 2016

Reach out to our IFRS 16 Specialist

Martin Roy


IFRS 16 specifies how to recognize, measure, present and disclose leases. The standard provides a single lessee accounting model, requiring the recognition of assets and liabilities for all leases, unless the lease term is 12 months or less or the underlying asset has a low value. Lessor accounting however remains largely unchanged from IAS 17 and the distinction between operating and finance leases is retained.

History of IFRS 16




Included in Part I of the CPA Canada Handbook2

January 13, 2016

IFRS 16, Leases published

Effective for annual periods beginning on or after January 1, 2019.

June 2016


Non-authoritative material added

The AcSB added to Part I of the Handbook the Basis for Conclusions and Illustrative Examples issued by the IASB in January 2016 that accompany, but are not part of, IFRS 16.

September 2017

May 14, 2020

Amended by Annual Improvements to IFRSs 2018-2020 Cycle

The amendment to Illustrative Example 13 accompanying IFRS 16 removes from the example the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives are illustrated in that example. The amendment to IFRS 16 only regards an illustrative example, so no effective date is stated.

September 2020

May 28, 2020

Amendments to IFRS 16 re Covid 19

Effective for annual reporting periods beginning on or after June 1, 2020. Earlier application is permitted, including in financial statements not yet authorized for issue at May 28, 2020.

July 2020

August 27, 2020


Amended by Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16).

These amendments provide temporary exceptions from applying specific hedge accounting requirements in IFRS 9 and IAS 39 to all hedging relationships directly affected by interest rate benchmark reform. In addition, the amendments to IFRS 7 provide specific disclosure requirements regarding uncertainty arising from interest rate benchmark reform. The amendments are effective for annual periods beginning on or after January 1, 2020. Earlier application is permitted.

October 2020

December 1, 2020

Up­dates to the Ba­sis of Con­clu­sions ma­te­r­ial

On December 1, 2020 the amendments made to the Basis for Conclusions as a result of Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) were added to  Part I of the CPA Canada Hand­book – Ac­count­ing.


March 2021

Amendments to IFRS 16 re Covid 19

On March 31, 2021, the IASB published "Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)" that extends, by one year, the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification.

April 2021

September 2022

Amendments re Sale and Leaseback Transactions.  See Completed Project.

On September 22, 2022, the IASB issued amendments to IFRS 16, Leases, which add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction. The amendments are effective for annual reporting periods beginning on or after January 1, 2024. Earlier application is permitted.

 December 2022


  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.

 The above summary does not include details of consequential amendments made as the result of other projects.

Related In­ter­pre­ta­tions

  • None

Related IFRIC Agenda Rejection Notices

  • None

AcSB’s IFRS Discussion Group meetings

  • January 10, 2019 - IFRS 16 and IAS 34: Disclosing the Effects of Adopting the Leases Standard; IFRS 16: Scope Exemption for Non-regenerative Resources; IFRS 16 and IAS 38: Cloud Computing Arrangements; and IFRS 16 and IAS 16: Accounting for Asset Retirement Obligations
  • October 16, 2018 - IFRS 11 and IFRS 16: Identifying the Customer in a Lease Contract for the Use of Assets by a Joint Arrangement; IFRS 16 and IAS 16: Accounting for Asset Retirement Obligations; IFRS 16: Identifying Separate Lease Components; IFRS 16: Guidance on “Low-value” Leases; IFRS 16: Lessee’s Discount Rate; and IFRS 16 and IAS 38: Cloud Computing Arrangements
  • June 21, 2018 - IFRS 16: Cloud Computing Arrangements, Lease Incentive and Variable Lease Payments
  • January 10, 2018 - IFRS 16: Fixed Payments and Variable Lease Payments, Future Lease Payments, Lessee’s Discount Rate, Lease Incentive, Cloud Computing Arrangements and Capitalization of Costs
  • October 5, 2017 - IFRS 16: Lease Term, Easement Granted by Regulatory Authority and Variable Lease Payments
  • May 30, 2017 - IFRS 16 and IAS 34: Variable Lease Payments and IFRS 16: Easements
  • November 29, 2016 - IFRS 16: Transition and Update on Implementation Support

Amendments under consideration

  • None

Related Interpretations

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