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IFRS 16 resources

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

Additionally this page includes groupings for:

IFRS 16 resources

Short-term leases

19 Sep 2019

This publication provides a step-by-step explanation of the accounting implications of the various subsequent changes that might impact a short-term lease’s classification using practical and easy to follow examples.

Deloitte e-learning — IFRS 16 (advanced)

26 Aug 2019

This Deloitte e-learning module provides training in the background, scope and principles under IFRS 16 'Leases', and the application of this standard. This e-learning builds on the 'IFRS 16 Leases (basic)' e-learning module. In this module, you will deeper dive into the key principles of lease accounting and learn about areas of potential judgment in applying IFRS 16.

Deloitte comment letter on tentative agenda decision on IFRS 16 — Lease term and useful life of leasehold improvements

21 Aug 2019

We have commented on the IFRS Interpretations Committee's publication in the June 2019 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the determination of the lease term and useful life of leasehold improvements.

We comment on seven IFRS Interpretations Committee tentative agenda decisions

20 Aug 2019

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IAS 1, IAS 7, IAS 41, IFRS 9, IFRS 15, and IFRS 16, as published in the June 2019 IFRIC Update.

Deloitte comment letter on tentative agenda decision on IFRS 16 — Lessee’s incremental borrowing rate

20 Aug 2019

We have commented on the IFRS Interpretations Committee's publication in the June 2019 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the determination of a lessee’s incremental borrowing rate.

We comment on two IASB exposure drafts

20 Aug 2019

We have responded to the IASB’s exposure drafts ED/2019/2 'Annual Improvements to IFRS Standards 2018–2020' and ED/2019/3 'Reference to the Conceptual Framework (Proposed amendments to IFRS 3)'.

Deloitte comment letter on the IASB's proposed annual improvements 2018-2020

20 Aug 2019

We agree with the proposed amendments to IFRS 9, IFRS 16, and IAS 41, however, we do not believe that the proposed amendment to IFRS 1 should be a requirement - we believe it should be an option.

2019 Update on Half Yearly Financial Reporting

12 Jul 2019

The 2019 edition of our popular guide to half-yearly financial reporting contains a regulatory overview, setting out the requirements for half-yearly financial reports and changes for preparers to contend with in 2019, including disclosures on the impact of implementing IFRS 16 Leases, a model half-yearly financial report, including illustrative IAS 34 condensed financial statements; and a disclosure checklist.

IASB presentation slides

08 Jul 2019

The IASB has posted to its website the slides of two full presentations and one breakfast talk given by IASB members at the recent annual congress of the European Accounting Association (EAA).

EFRAG draft comment letter on proposed annual improvements to IFRS standards 2018-2020

05 Jun 2019

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB exposure draft ED/2019/2 ‘Annual Improvements to IFRS Standards 2018-2020 Cycle’.

Need to know — IASB publishes proposals for amendments under its Annual Improvement Process

28 May 2019

The International Accounting Standards Board (IASB) has published an exposure draft ED/2019/2 'Annual Improvements to IFRS Standards 2018–2020'. It contains proposed amendments to four International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project. Comments are requested by 20 August 2019.

IASB publishes proposals for amendments under its annual improvements project (cycle 2018-2020)

21 May 2019

The International Accounting Standards Board (IASB) has published an exposure draft ED/2019/2 'Annual Improvements to IFRS Standards 2018–2020'. It contains proposed amendments to four International Financial Reporting Standards (IFRSs) as result of the IASB's annual improvements project. Comments are requested by 20 August 2019.

Lease modifications – extending the lease term

21 May 2019

This publication from Deloitte Hong Kong focuses on the extension of a lease. Specifically, it addresses the following issues: 1) What constitutes a lease modification? 2) When should a lease modification be accounted for? 3) What is the impact of a lease modification on the lease term? 4) How do the modification requirements interact with transition reliefs?

We comment on four IFRS Interpretations Committee tentative agenda decisions

15 May 2019

We have published our comment letters on IFRS Interpretations Committee tentative agenda decisions related to IAS 19, IFRS 15, IFRS 16, and cryptocurrencies, as published in the March 2019 IFRIC Update.

Deloitte comment letter on tentative agenda decision on IFRS 16 — Subsurface rights

15 May 2019

We have commented on the IFRS Interpretations Committee's publication in the March 2019 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the Standard applicable (IFRS 16, IAS 38 or another Standard) in accounting for a contract for subsurface rights.

Paper on the new leasing standard and top ten considerations for investors

13 May 2019

The CFA Institute, a global association of investment professionals, has published 'Leases: What Investors Need to Know About the New Standard'.

IFRS model financial statements 2018 — Appendix 2: Early adoption of IFRS 16 'Leases'

12 Feb 2019

This Appendix has been produced to complement the 'International GAAP Holdings Limited Model financial statements for the year ended 31 December 2018'. It focuses on the changes introduced by the requirements in IFRS 16 Leases which is effective for annual periods beginning on or after 1 January 2019 (earlier application is permitted if disclosed and if IFRS 15 Revenue from Contracts with Customers is also applied).

IVSC consults on the valuation of non-financial liabilities

07 Jan 2019

The International Valuation Standards Council (IVSC) has published an exposure draft IVS 220 'Non-Financial Liabilities' for public comment.

IASB publishes editorial corrections

12 Dec 2018

The IASB has published its first batch of editorial corrections in 2018.

Governance in brief — FRC issues advice on annual reports for the 2018/19 reporting season

06 Dec 2018

The Financial Reporting Council (FRC) has issued its Annual Review of Corporate Reporting and annual letter to finance directors and audit committee chairs covering its perspective on key developments for 2018/19 annual reports.

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