This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice ( for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

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


  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

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.