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

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FRC publishes changes to FRS 102 as part of its second periodic review of the standard

27 Mar, 2024

The Financial Reporting Council (FRC) has published ‘Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review 2024’ (“the Amendments”) which contains the changes to FRS 102 and other UK and Republic of Ireland financial reporting standards as a result of the second periodic review of the standard.

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EFRAG survey on IFRS 16 — user perspective

22 Feb, 2024

The European Financial Reporting Advisory Group (EFRAG) has launched the second part of its survey on IFRS 16 to seek input from users on whether the standard has improved the reporting on lease activities.

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EFRAG survey on IFRS 16

13 Feb, 2024

The European Financial Reporting Advisory Group (EFRAG) has launched a survey to seek input from preparers, auditors, regulators, and national standard setters on the effects of IFRS 16 on the accounting for leases.

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European Union formally adopts amendments to IFRS 16

21 Nov, 2023

The European Union has published a Commission Regulation endorsing 'Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)' issued by the IASB in September 2022.

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ESMA publishes 28th enforcement decisions report

09 Oct, 2023

The European Securities and Markets Authority (ESMA) has published further extracts from its confidential database of enforcement decisions taken by European national enforcers. This batch deals with decisions in relation to IFRS 3, IAS 32/IFRS 3, IAS 38, IFRS 10, IFRS 10/IFRS 11, IFRS 15, IFRS 9/IFRS 16, IFRS 7, and IFRS 16.

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FRC publishes project update on the periodic review of UK and Ireland accounting standards

29 Sep, 2023

The Financial Reporting Council ("FRC") has published a project update on its periodic review of FRS 102 and other UK and Republic of Ireland financial reporting standards.

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UKEB adopts Lease Liability in a Sale and Leaseback — Amendments to IFRS 16

16 May, 2023

The UK Endorsement Board (UKEB) has adopted 'Lease Liability in a Sale and Leaseback — Amendments to IFRS 16' which was issued by the International Accounting Standards Board (IASB) in September 2022.

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We respond to FRED 82 'Draft Amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs'

05 May, 2023

We have published our comment letter on the Financial Reporting Council's (FRC's) Financial Reporting Exposure Draft (FRED) 82 'Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs'.

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ESMA publishes 27th enforcement decisions report

29 Mar, 2023

The European Securities and Markets Authority (ESMA) has published further extracts from its confidential database of enforcement decisions taken by European national enforcers. This batch deals with decisions in relation to IFRS 10/IFRS 16/IAS 1, IFRS 8, IAS 38 (two decisions), IFRS 16, IFRS 15, IAS 36/IAS 1, IAS 1, IFRS 7, IFRS 9 (two decisions), and IAS 32/IFRS 9.

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FRC roundtable events on FRED 82

10 Feb, 2023

The Financial Reporting Council (FRC) will hold a series of roundtable events from 15 March to 23 March on Financial Reporting Exposure Draft (FRED) 82 ‘Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review’ (“FRED 82”).

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We comment on an IFRS Interpretations Committee tentative agenda decision

07 Feb, 2023

We have published our comment letter on an IFRS Interpretations Committee tentative agenda decisions related to IFRS 16, as published in the November 2022 'IFRIC Update'.

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EFRAG issues final endorsement advice on Amendments to IFRS 16

01 Feb, 2023

The European Financial Reporting Advisory Group (EFRAG) has issued its final endorsement advice letter relating to the use in the European Union (EU) of 'Lease Liability in a Sale and Leaseback' (Amendments to IFRS 16) (‘the Amendments’).

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Podcast on Q4 2022 IFRS Interpretations Committee developments

23 Jan, 2023

The IASB has issued a podcast on the developments of the IFRS Interpretations Committee during the fourth quarter of 2022.

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UKEB publishes its Draft Endorsement Criteria Assessment on Lease Liability in a Sale and Leaseback — Amendments to IFRS 16

06 Jan, 2023

The UK Endorsement Board (UKEB) has published its Draft Endorsement Criteria Assessment (DECA) which assesses whether 'Lease Liability in a Sale and Leaseback — Amendments to IFRS 16', issued by the International Accounting Standards Board (IASB) in September 2022, meet the UK's statutory requirements for adoption of IFRS accounting standards as set out in Statutory Instrument 2019/685.

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FRC consults on changes to FRS 102 as part of its second periodic review of the standard

15 Dec, 2022

The Financial Reporting Council (FRC) has published Financial Reporting Exposure Draft (FRED) 82 ‘Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and other FRSs – Periodic Review’ (“FRED 82”) which proposes changes to FRS 102 and other UK and Republic of Ireland financial reporting standards as a result of the second triennial review of the standard.

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IFRS Foundation proposes second update to IFRS Taxonomy 2022

28 Nov, 2022

The IFRS Foundation has issued a proposed IFRS Taxonomy Update, 'IFRS Accounting Taxonomy 2022 Proposed Update 2 — 'Lease Liability in a Sale and Leaseback' and 'Non-current Liabilities with Covenants''.

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EFRAG issues draft endorsement advice on Amendments to IFRS 16

15 Nov, 2022

The European Financial Reporting Advisory Group (EFRAG) has issued a draft endorsement letter and a separate invitation to comment relating to the use in the European Union (EU) of 'Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) (‘the Amendments’).

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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.

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We comment on four IFRS Interpretations Committee tentative agenda decisions

25 May, 2022

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IFRS 9/IFRS 16, IFRS 17 and IAS 32, as published in the March 2022 'IFRIC Update'.

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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.

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