IFRS 16 resources

The Financial Reporting Council (FRC) continues raise queries regarding IFRS 16 and identifies the most frequently raised areas of challenge from both its thematic and routine reviews in its Annual Review of Corporate Reporting.  This review, alongside the previously issued IFRS 16 thematic, sets out the FRC's expectations for high-quality reporting in this area and highlights those areas where improvements to reporting quality are needed.  These include:

  • The need for entity-specific and not boiler-plate lease accounting policies.  The FRC highlights that such policies should cover all material accounting transactions such as those in relation to sale and leaseback transactions, lease incentives, items outside the scope of IFRS 16 and non-lease components.  Lessors should remember to explain the basis for classifying their leases as operating or financing.
  • Improvements in IFRS 16 disclosures.  The FRC has identified that some companies are omitting required IFRS 16 disclosures and highlights that improvements can be made to a number of disclosures including those provided by lessees with significant variable payment features, those regarding judgements around lease extension or termination options and whether an arrangement meets the definition of a lease and consistency of disclosures with those provided elsewhere in the accounts.
  • Clear explanations of material aspects of the transition adjustments from IAS 17 Leases.
  • The need for both lessees and lessors to consider the overall disclosure objective of the standard.  The FRC indicates that information in the notes, together with the information provided in the statement of financial position, statement of profit or loss and statement of cash flows, should enable users to assess the effect of leases on the financial position, financial performance and cash flows.  It indicates that this could include information about variable payment features in leases and disaggregated information about future cash flows.

The FRC will continue to review compliance with IFRS 16 through its routine work.

This page includes all of our resources on IFRS 16.  It includes links to:

Additionally this page includes groupings for:

IFRS 16 resources

EFRAG endorsement status report 22 September 2022

22 Sep, 2022

The endorsement status report has been updated to reflect that the IASB has published amendments to IFRS 16 that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.

IASB issues amendments to IFRS 16

22 Sep, 2022

The International Accounting Standards Board (IASB) has issued 'Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)' with amendments that clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.

Deloitte comment letter on tentative agenda decision on lessor forgiveness of lease payments

24 May, 2022

We agree with the IFRS Interpretations Committee’s decision not to add this item onto its agenda. However, we have concerns that the analysis presented in the tentative agenda decision may have unintended consequences in a number of areas and suggest that further analysis may be warranted before the tentative agenda decision is finalised.

UKEB adopts May 2020 amendments to IFRS Accounting Standards

13 Apr, 2022

The UK Endorsement Board (UKEB) has adopted the International Accounting Standard Board’s (IASB's) May 2020 Amendments, its first adoption decision since the delegation of powers in May 2021.

CIPFA LASAAC issue its statement on the Deferral of IFRS 16 Leases

12 Apr, 2022

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee have issued an updated statement on the deferral of IFRS 16 'Leases' for Local Authorities until 1 April 2024.

CIPFA LASAAC issues its preliminary decision and feedback statement following its exceptional consultation in Feb 2022

21 Mar, 2022

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) have issued their preliminary decision and feedback statement following their exceptional consultation on time limited changes to the 2021/22 Code of Practice on Local Authority Accounting in the United Kingdom and the 2022/23 code.

CIPFA LASAAC issues an exceptional consultation on time limited changes to the Code of Practice on Local Authority Accounting

12 Feb, 2022

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) have issued an exceptional consultation on time limited changes to the Code of Practice on Local Authority Accounting in the United Kingdom ("the Code") to help alleviate delays to the publication of audited financial statements.

HM Treasury issues new financial reporting manual (FReM)

18 Dec, 2021

HM Treasury has issued a revised version of the government financial reporting manual (FReM) 2022-23.

Accounting roundup — Closing Out 2021

16 Dec, 2021

Closing Out 2021 discusses the principal corporate reporting issues arising in respect of 31 December 2021 annual reports, covering areas of regulatory focus identified in the FRC’s Annual Review of Corporate Reporting 2020/2021, issues arising from climate change including new and forthcoming climate-related disclosures and developments in reporting standards.

Governance in focus — On the board agenda 2022

03 Dec, 2021

As 2021 draws to a close, our annual review of board topics will stimulate your thinking and help prepare you for the year ahead. Across the board, expectations of business are rising and it is this demanding environment which shapes the articles in this year’s publication.

Governance in brief — FRC issues advice on annual reports for 2021/22 reporting season

11 Nov, 2021

The FRC issues advice on annual reports for 2020/21 reporting season

FRC publishes findings on the quality of corporate reporting in 2020/2021

27 Oct, 2021

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2020/2021. The report sets out the FRC’s expectations of areas of corporate reporting that require improvement and highlights the ten most frequently raised topics where improvements to reporting quality are needed.

We comment on two IFRS Interpretations Committee tentative agenda decisions

25 May, 2021

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IFRS 16 and IAS 32, as published in the March 2021 'IFRIC Update'.

Deloitte comment letter on tentative agenda decision on non-refundable VAT on lease payments

25 May, 2021

We agree with the IFRS Interpretations Committee’s decision not to add this item onto its agenda. However, we do not agree with the proposed wording of the agenda decision. We believe that the agenda decision should set out the appropriate treatment of VAT charged on lease payments as an explanation of the appropriate accounting treatment in the agenda decision would prevent diversity arising in practice.

EFRAG publishes a feedback statement on the IASB Exposure Draft ED/2020/4 'Lease liability in a sale and leaseback'

17 May, 2021

The European Financial Reporting Advisory Group (EFRAG) has published its feedback statement on the International Accounting Standards Board (IASB's) Exposure Draft ED/2020/4 'Lease liability in a sale and leaseback'.

UK adopts IFRS amendments for Covid-19-Related Rent Concessions beyond 30 June 2021

13 May, 2021

The Secretary of State for Business, Energy and Industrial Strategy (BEIS) has adopted 'COVID-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)'.

UK Endorsement Board secretariat publishes its feedback statement on the IASB's Exposure Draft ED/2020/4 Lease Liability in a Sale and Leaseback

06 May, 2021

The UK Endorsement Board secretariat has published its feedback statement on the International Accounting Standard Board's (IASB's) Exposure Draft ED/2020/4 'Lease Liability in a Sale and Leaseback (Proposed amendment to IFRS 16)'.

UK Endorsement Board secretariat publishes draft UK Endorsement Criteria Assessment on the IASB's amendment to IFRS 16 and COVID 19

19 Apr, 2021

The UK Endorsement Board secretariat has published a draft UK Endorsement Criteria Assessment on the International Accounting Standard Board’s (IASB's) amendment 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)'.

UK Endorsement Board secretariat publishes its final comment letter on the IASB's Exposure Draft ED/2020/4 Lease Liability in a Sale and Leaseback

12 Apr, 2021

The UK Endorsement Board secretariat has published its final comment letter in response to the International Accounting Standard Board's (IASB's) Exposure Draft ED/2020/4 'Lease Liability in a Sale and Leaseback (Proposed amendment to IFRS 16)'.

EFRAG's final comment letter on the IASB's proposed amendments to IFRS 16

12 Apr, 2021

The European Financial Reporting Advisory Group (EFRAG) has issued its final comment letter in response to the International Accounting Standard Board’s (IASB's) Exposure Draft ED/2020/4 'Lease Liability in a Sale and Leaseback (Proposed amendment to IFRS 16'.

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