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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

Overview

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

Date1

 

Development

Comments

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

N/A

 

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

Notes

  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

  • 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

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