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