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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

ESMA announces enforcement priorities for 2017 financial statements

27 Oct 2017

The European Securities and Markets Authority (ESMA) has announced the priority issues that the assessment of listed companies' 2017 financial statements will focus on.

A guide to the incremental borrowing rate — Assessing the impact of IFRS 16 'Leases'

19 Oct 2017

The issuance of IFRS 16 'Leases' has resulted in a significant number of companies expecting to see material changes in the presentation of their financial statements as a result of bringing operating leases onto the balance sheet and changing the way in which expenses are recorded in the income statement. The discount rate assumption is one of the most important judgements that management will need to make and the one which may have the largest quantitative impact on the lease asset and liability valuations.

FRC publishes year-end advice to preparers in advance of the 2017/18 reporting season

11 Oct 2017

The Financial Reporting Council (FRC) has published a letter to Audit Committee Chairs and Finance Directors, in advance of the 2017/18 reporting season, highlighting changes to reporting requirements and aspects of annual reports where the FRC feels that companies can improve.

IASB posts webcast on IFRS 16 lease term requirements

02 Oct 2017

As part of the IASB webcast series on IFRS 16 implementation, the IASB staff has made available a webcast related to IFRS 16 lease term requirements.

IASB publishes editorial corrections

27 Sep 2017

The IASB has published a batch of editorial corrections that impact consequential amendments and stand-alone standards as well as the Blue Book 2017, the Red Book 2017 and the Green Book 2017.

IASB posts webcast on IFRS 16 lessee disclosures

24 Jul 2017

As part of the IASB webcast series on IFRS 16 implementation, the IASB staff has made available a webcast related to IFRS 16 disclosure requirements for lessees.

FRC issues amendments to FRS 101

12 Jul 2017

The Financial Reporting Council (FRC) has issued amendments to FRS 101 ‘Reduced Disclosure Framework’.

CIPFA/LASAAC consults on new Code of Practice on Local Authority Accounting

12 Jul 2017

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) are seeking comments, via an ‘Invitation to Comment’, on proposals for developing the 2018/19 Code of Practice on Local Authority Accounting in the UK (the Code) which would apply to accounting periods beginning on or after 1 April 2018.

FRAB minutes for June 2017 meeting released

07 Jul 2017

The minutes of the Financial Reporting Advisory Board’s (FRAB’s) meeting of 15 June 2017 have been made available on the HM Treasury website.

We comment on FRED 67— 'Draft amendments to FRS 102 - Triennial review - Incremental improvements and clarifications'

04 Jul 2017

We have published our comment letter on the Financial Reporting Council’s (FRC’s) Financial Reporting Exposure Draft (FRED) 67 ‘Draft amendments to FRS 102 - Triennial review - Incremental improvements and clarifications'.

Deloitte comment letter on FRED 67— 'Draft amendments to FRS 102 - Triennial review - Incremental improvements and clarifications'

04 Jul 2017

We have published our comment letter on the Financial Reporting Council’s (FRC’s) Financial Reporting Exposure Draft (FRED) 67 ‘Draft amendments to FRS 102 - Triennial review - Incremental improvements and clarifications'.

FRC defers decision on updating FRS 102 to reflect major changes in IFRSs

30 Jun 2017

The Financial Reporting Council (FRC) has today published a feedback statement summarising respondents views on its consultation Document containing proposals to update Financial Reporting Standard (FRS) 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ to reflect recent changes in International Financial Reporting Standards (IFRSs).

ICAEW and IFRS Foundation announce virtual IFRS 16 conference

30 Jun 2017

The IFRS Foundation, along with the Institute of Chartered Accountants in England and Wales (ICAEW), will be hosting a virtual IFRS conference on the implementation of IFRS 16 'Leases' on 10 October 2017. ICAEW and IFRS Foundation have chosen this new format for their annual joint conference as it considerably brings down cost and can be attended from anywhere in the world.

EFRAG endorsement status report 29 June 2017

29 Jun 2017

The endorsement status report has been updated to reflect that ARC voted in favour of endorsing IFRS 16 'Leases' and 'Applying IFRS 9 'Financial Instruments with IFRS 4 'Insurance Contracts'. Final endorsement of both pronouncements is now expected in the fourth quarter of 2017.

BCBS frequently asked questions on changes to lease accounting

07 Apr 2017

The Basel Committee on Banking Supervision (BCBS) has released responses to frequently asked questions related to the changes to lease accounting promulgated by the International Accounting Standards Board (IASB) and the Financial Accounting Standards Board (FASB).

May 2017 meeting of the ICAEW FRDG

31 Mar 2017

The next meeting of the Institute of Chartered Accountants in England and Wales (ICAEW) Financial Reporting Discussion Group (FRDG) will be held on 8 May 2017 in London. The meeting will provide a brief overview of the Financial Reporting Council’s (FRC’s) first triennial review of Financial Reporting Standard (FRS) 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’.

FRAB minutes for March 2017 meeting released

31 Mar 2017

The minutes of the Financial Reporting Advisory Board’s (FRAB’s) meeting of 16 March 2017 have been made available on the HM Treasury website.

EFRAG issues positive endorsement advice on IFRS 16

27 Mar 2017

The European Financial Reporting Advisory Group (EFRAG) has issued final endorsement advice for IFRS 16 ‘Leases’.

EFRAG endorsement status report 27 March 2017

27 Mar 2017

This endorsement status report update reflects that EFRAG published an endorsement advice on IFRS 16 'Leases'.

IASB posts webcast on IFRS 16 lease modifications

27 Mar 2017

As part of the IASB webcast series on IFRS 16 implementation, the IASB staff has made available a webcast related to IFRS 16 lease modification requirements for lessees.

Correction list for hyphenation

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