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IFRS 16 news

The Financial Reporting Council (FRC) has called for improvements in the reporting under IFRS 16 Leases following the first year of its application and has set out its expectations in a recently-issued thematic review, its Annual Review of Corporate Reporting and its year-end letter to Audit Committee Chairs and Finance Directors.

The FRC continues to identify boilerplate rather than entity-specific accounting policies.  It expects companies to:

  • tailor the descriptions of their leasing accounting policies to match their particular circumstances and to cover all material areas;
  • provide detailed information about the significant judgements affecting their accounting for leases; and
  • include sufficient detail to enable a good understanding of the financial reporting effects of their leasing arrangements on their financial position, financial performance and cash flows.

In addition to considering the broader areas for improvement in its thematic review, the FRC also encourages companies to consider whether enhancements are required to IFRS 16 disclosures as a result of COVID-19. These may include amending accounting policies in relation to any lease modifications, in the light of the IASB’s amendments to IFRS 16, as well as clearly communicating any significant changes in judgements companies may make, e.g. relating to lease term, as a consequence of COVID-19. Companies may also need to enhance or introduce estimation uncertainty disclosures in relation to impairment testing of right of use assets.

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

This page provides all of our news items related to IFRS 16.

Related news

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'.

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'.

EFRAG issues its final endorsement advice on the IASB's proposed amendment to IFRS 16 and COVID 19

05 Apr 2021

The European Financial Reporting Advisory Group (EFRAG) has issued its final endorsement advice letter relating to the use in the European Union (EU) of 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)' ("the Amendment).

IASB extends practical relief regarding COVID-19-related rent concessions

31 Mar 2021

The International Accounting Standards Board (IASB) has 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.

Deloitte comments on the IASB's proposal on lease liability in a sale and leaseback

29 Mar 2021

We have commented on IASB exposure draft ED/2020/4 ‘Lease Liability in a Sale and Leaseback’, which was published by the IASB on 27 November 2020. The exposure draft aims at clarifying how a seller-lessee should apply the subsequent measurement requirements in IFRS 16 to the lease liability that arises in a sale and leaseback transaction.

IASB decides to extend the practical relief regarding COVID-19-related rent concessions

10 Mar 2021

In a supplementary meeting held earlier today, the IASB considered the feedback received on the February 2021 exposure draft 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)' and decided to finalise the proposed extension of the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification by one year.

EFRAG’s final comment letter on the IASB's proposed amendment to IFRS 16 and COVID 19

04 Mar 2021

The European Financial Reporting Advisory Group (EFRAG) has issued its final comment letter on the IASB’s Exposure Draft ED/2021/2 Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed Amendments to IFRS 16).

UK Endorsement Board supports the IASB's proposed amendment to IFRS 16 and COVID 19

04 Mar 2021

The UK Endorsement Board (UKEB) has issued its final comment letter on the International Accounting Standard Board's (IASB's) Exposure Draft ED/2021/2 'Covid-19-Related Rent Concessions Beyond 30 June 2021 (Proposed Amendments to IFRS 16)'.

Supplementary IASB meeting

02 Mar 2021

On 10 March, the IASB will be holding a supplementary meeting on COVID-19-related rent concessions.

Deloitte supports the IASB's proposal to extend the practical relief regarding COVID-19-related rent concessions

24 Feb 2021

We have commented on IASB exposure draft ED/2021/2 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)', which was published by the IASB on 11 February 2021. The exposure draft proposes to extend the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification.

IVSC valuation guide on IBOR reform

17 Feb 2021

The International Valuation Standards Council (IVSC) has published a perspectives paper 'IBOR Reform - A Valuation Guide' as the move away from IBOR will change the pricing, valuation, and risk management practices, notably in the financial services sector but also for any entity that uses financial instruments.

EFRAG draft comment letter on the IASB's proposed amendment to IFRS 16 and COVID 19

14 Feb 2021

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB's Exposure Draft ED/2021/2 'Covid-19-Related Rent Concessions Beyond 30 June 2021 (Proposed Amendments to IFRS 16)'.

IASB proposes extending the practical relief regarding COVID-19-related rent concessions

11 Feb 2021

The International Accounting Standards Board (IASB) has published an exposure draft 'Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)' that contains a proposed extension of the May 2020 amendment that provides lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Comments are requested by 25 February 2021.

IASB, FASB, and The Accounting Review call for academic research papers on the performance of standards in capital markets

10 Feb 2021

The IASB, FASB, and The Accounting Review (TAR) are requesting academic research papers focusing “on the effectiveness of the FASB’s and/or IASB’s standards on revenue recognition (Topic 606 and IFRS 15 'Revenue from Contracts with Customers'), leases (Topic 842 and IFRS 16 'Leases'), and financial instruments (Topic 326, 'Financial Instruments – Credit Losses and IFRS 9 Financial Instruments').”

UK Endorsement Board secretariat publishes draft comment letter on the IASB’s ED/2020/4 Lease Liability in a Sale and Leaseback

05 Feb 2021

The UK Endorsement Board secretariat has published its draft comment letter on the International Accounting Standard Board’s (IASB's) Exposure Draft (ED) ED/2020/4 'Lease Liability in a Sale and Leaseback'.

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