IFRS 16 news

Whilst leases do not feature in the Financial Reporting Councils (FRC's) top ten findings for 2022/23, the FRC's 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 have been identified in the past.  The FRC expects to see:

  • Accounting policies tailored to the company’s specific circumstances, covering all material aspects of leasing arrangements (eg accounting for non-lease
    components, sale and leaseback transactions and the company’s activities as a lessor).
  • Disclosure clearly explaining the significant judgements made by management (particularly to determine the lease term) and estimation uncertainty.
  • Adequate presentation of leasing arrangements in primary statements
  • Sufficient level of qualitative and quantitative information in respect of the company’s leasing arrangements and their financial effects.
  • Material balance sheet movements in right of use assets and lease liability balances explained.
  • Clear explanation of the circumstances in which the interest rate implicit in the lease can be determined.
  • European Securities and Markets Authority guidelines being followed for alternative performance measures (APMs) presented. 

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

Related news

ESMA announces enforcement priorities for 2020 financial statements

28 Oct, 2020

The European Securities and Markets Authority (ESMA) has announced the priority issues that the assessment of listed companies' 2020 financial statements will focus on. A special focus is on COVID-related matters.

FRC publishes findings on the quality of corporate reporting in 2019/2020

21 Oct, 2020

The Financial Reporting Council (FRC) has published its Annual Review of Corporate Reporting 2019/2020, which provides the FRC's assessment of corporate reporting in the UK based on evidence from a variety of sources, including the work of the FRC's own Corporate Reporting Review (CRR) team. The report sets out the FRC’s expectations of areas of corporate reporting that require improvement and what it expects companies to focus on in the coming reporting season. The FRC expects companies to consider its findings during the financial reporting process.

EFRAG issues final endorsement advice on amendments to the interest rate benchmark reform - Phase 2

12 Oct, 2020

The European Financial Reporting Advisory Group (EFRAG) has issued its final endorsement advice letter relating to the use in the European Union (EU) of 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)' (''the Amendments'').

European Union formally adopts IFRS 16 amendments regarding COVID-19-related rent concessions

12 Oct, 2020

The European Union has published a Commission Regulation endorsing 'Covid-19-Related Rent Concessions (Amendment to IFRS 16)'.

FRC calls for improvements in the reporting of revenue and leases

25 Sep, 2020

The Financial Reporting Council (FRC) has published the results of two thematic reviews covering the current reporting on IFRS 15 ‘Revenue from Contracts with Customers’ and IFRS 16 ‘Leases’ following the first year of its application. The reviews identify a number of areas where companies need to improve their reporting.

FRC calls for comments on its draft UK Endorsement Criteria Assessment on the IBOR Phase 2 Amendments

09 Sep, 2020

The Financial Reporting Council (FRC) has published a draft UK Endorsement Criteria Assessment on the International Accounting Standards Board's (IASB’s) amendment ‘Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)’ (the Amendments).

IASB finalises phase 2 of its IBOR reform project

27 Aug, 2020

The International Accounting Standards Board (IASB) has published 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)' with amendments that address issues that might affect financial reporting after the reform of an interest rate benchmark, including its replacement with alternative benchmark rates. The amendments are effective for annual periods beginning on or after 1 January 2021, with earlier application permitted.

FRC issues statement on application of Accounting for Lease Modifications (Amendment to IFRS 16 - Covid-19-Related Rent Concessions)

24 Aug, 2020

The Financial Reporting Council (FRC) has confirmed it will not pursue regulatory action in the Accounting for Lease Modifications (Amendment to IFRS 16 – Covid-19-Related Rent Concessions) before adoption by the EU.

IFRS Foundation publishes IFRS Taxonomy update

18 Aug, 2020

The IFRS Foundation has published 'IFRS Taxonomy 2020 — Covid-19-Related Rent Concessions (Amendment to IFRS 16)'.

EFRAG outreach event in the context of the endorsement process of IBOR Phase 2

03 Aug, 2020

The issuance of final amendments as result of the IASB project on 'IBOR reform and the effects on financial reporting — Phase 2' is expected in August. Given the urgency of the endorsement and the accelerated consultation process, the European Financial Reporting Advisory Group (EFRAG) has organised a public outreach event on 7 September 2020 to collect additional views from constituents on the draft endorsement advice EFRAG plans to publish at the end of August (shortly after the publication of the amendments by the IASB).

ESMA statement on supervisory coordination on accounting for COVID-19-related rent concessions

21 Jul, 2020

The European Securities and Markets Authority (ESMA) has issued a public statement recommending coordination of supervisory action with regards to issuers’ accounting for COVID-19-related rent concessions.

EFRAG moves quickly on endorsement advice on IFRS 16 amendment

03 Jun, 2020

The European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice for 'Covid-19-Related Rent Concessions (Amendment to IFRS 16)' not even a week after the amendment was issued by the IASB.

ICAEW to host an IFRS update webinar

02 Jun, 2020

The Institute of Chartered Accountants in England and Wales (ICAEW) will be hosting a webinar on latest developments in IFRS Standards.

IASB finalises amendment to IFRS 16 regarding COVID-19-related rent concessions

28 May, 2020

The International Accounting Standards Board (IASB) has published 'Covid-19-Related Rent Concessions (Amendment to IFRS 16)' amending the standard to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Concurrently, the IASB also published a proposed Taxonomy Update to reflect this amendment.

We comment on the IASB's proposed amendments as a result of the second phase of its project on the IBOR reform

25 May, 2020

We have commented on IASB exposure draft ED/2020/1 'Interest Rate Benchmark Reform — Phase 2 (Proposed amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)', which was published by the IASB on 9 April 2020.

IASB votes to finalise IFRS 16 amendment

15 May, 2020

In a supplementary meeting today, the IASB considered the feedback it received on its 24 April exposure draft 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)' that contained a proposed amendment that would provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. The 14-day comment letter period closed on 8 May 2020 and the Board received 110 comment letters (including late submissions).

IASB concludes the 2018-2020 annual improvements cycle

14 May, 2020

The IASB has issued 'Annual Improvements to IFRS Standards 2018–2020'. The pronouncement contains amendments to four International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project.

We comment on two IFRS Interpretations Committee tentative agenda decisions

13 May, 2020

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IAS 12 and IFRS 16, as published in the March 2020 IFRIC Update.

IASB announces supplementary meeting

07 May, 2020

On 15 May, the IASB will hold a supplementary meeting on COVID-19-related matters. The meeting will be held by conference call and is expected to last one hour (10:00-11:00 hrs BST).

EFRAG draft comment letter on rent concessions ED

01 May, 2020

The European Financial Reporting Advisory Group (EFRAG) has published a draft comment letter on the IASB exposure draft ED/2020/2 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)'.

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