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IFRS 16 resources

IFRS 16 Leases has been published and is effective for periods beginning on or after 1 January 2019.  The FRC expects companies to apply this new standard properly and provide sufficient specific disclosure of the impact including key judgements made and clear communication of the transition methods adopted. It has published a thematic review to help companies with disclosures in this area.    

This page includes all of our resources on IFRS 16 to help preparers for the forthcoming reporting season.  It includes links to:

Additionally this page includes groupings for:

IFRS 16 resources

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).

Need to know — IASB issues 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)'

09 Sep 2020

This 'Need to know' addresses the amendments to IFRS 9 'Financial Instruments', IAS 39 'Financial Instruments: Recognition and Measurement', IFRS 7 'Financial Instruments: Disclosures', IFRS 4 'Insurance Contracts' and IFRS 16 'Leases' that have been published by the International Accounting Standards Board (Board). The amendments are titled 'Interest Rate Benchmark Reform—Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)'.

EFRAG endorsement status report 28 August 2020

28 Aug 2020

The endorsement status report has been updated to reflect that the IASB issued 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)' on 27 August 2020 and that EFRAG published a draft endorsement advice letter on the amendments on 28 August 2020.

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.

Accounting considerations in response to COVID-19 — Leases

14 Jul 2020

COVID-19 has led many lessors to provide relief to lessees by deferring or relieving them of amounts that would otherwise be payable. In some cases this is through negotiation between the parties, but can also be as a consequence of a government encouraging or requiring that the relief be provided. IFRS 16 requires lessees to assess whether changes to lease contracts are lease modifications as this term is defined in the Standard and, if so, the lessee must remeasure the lease liability using a revised discount rate. This video explains the amendments made in response to the current economic climate.

EFRAG endorsement status report 6 July 2020

06 Jul 2020

The endorsement status report has been updated to reflect that the Accounting Regulatory Committee (ARC) has voted in favour of 'Covid-19-Related Rent Concessions (Amendments to IFRS 16)'.

Need to know — IASB finalises amendment to IFRS 16 'Leases' regarding COVID-19-related rent concessions

04 Jun 2020

This Need to know addresses the amendment to IFRS 16 'Leases' published by the IASB in May 2020, titled 'Covid-19-Related Rent Concessions'. This is an update of our earlier Need to know on the Exposure Draft.

EFRAG endorsement status report 3 June 2020

03 Jun 2020

The endorsement status report has been updated to reflect that the IASB issued 'Reference to the Conceptual Framework', 'Property, Plant and Equipment — Proceeds before Intended Use', 'Onerous Contracts — Cost of Fulfilling a Contract', and 'Annual Improvements to IFRS Standards 2018–2020' on 14 May 2020, that the IASB issued 'Covid-19-Related Rent Concessions' on 28 May, and that EFRAG published final endorsement advice on 'Covid-19-Related Rent Concessions' on 2 June 2020.

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.

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

25 May 2020

We are largely supportive of the amendments. In particular, we support the key changes that ensure that entities that apply hedge accounting will continue to do so as they transition to new benchmark interest rates and that the accounting for the modification of hedged items, when those modifications arise directly from the reforms, are reflected on a prospective basis via the application of IFRS 9:B5.4.5. We consider these as being the two most important elements of the proposals.

Need to know — IASB publishes package of narrow-scope amendments to IFRS Standards

21 May 2020

This Need to know addresses the recent package of narrow-scope amendments to IFRS Standards that was published by the IASB on 14 May 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).

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.