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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

IASB, FASB, and The Accounting Review call for academic research papers on the performance of standards in capital markets

10 Feb 2021

The IASB, FASB, and The Accounting Review (TAR) are requesting academic research papers focusing “on the effectiveness of the FASB’s and/or IASB’s standards on revenue recognition (Topic 606 and IFRS 15 'Revenue from Contracts with Customers'), leases (Topic 842 and IFRS 16 'Leases'), and financial instruments (Topic 326, 'Financial Instruments – Credit Losses and IFRS 9 Financial Instruments').”

UK Endorsement Board secretariat publishes draft comment letter on the IASB’s ED/2020/4 Lease Liability in a Sale and Leaseback

05 Feb 2021

The UK Endorsement Board secretariat has published its draft comment letter on the International Accounting Standard Board’s (IASB's) Exposure Draft (ED) ED/2020/4 'Lease Liability in a Sale and Leaseback'.

IASB will propose to extend practical relief on rent concessions

04 Feb 2021

In a supplementary meeting held earlier today, the IASB discussed extending the practical relief in IFRS 16, which permits lessees not to assess whether particular rent concessions occurring as a direct consequence of the COVID-19 pandemic are lease modifications and, instead, to account for those rent concessions as if they were not lease modifications.

IASB posts recordings of recent webinars on academics and the post-implementation reviews of IFRS 9 and IFRS 16

03 Feb 2021

The IASB has posted the recordings of its recent webinars on identifying research opportunities by academics in IFRS 9 ‘Financial Instruments’ and IFRS 16 ‘Leases’.

CIPFA/LASAAC consult on changes to the Code of Practice on Local Authority Accounting in relation to accounting for secure housing tenancies and COVID-19-related rent concessions

19 Jan 2021

The Chartered Institute of Public Finance and Accountancy (CIPFA) and the Local Authority (Scotland) Accounts Advisory Committee (LASAAC) are seeking comments on proposed changes to the Code of Practice on Local Authority Accounting in relation to accounting for secure housing tenancies and COVID-19-related rent concessions.

IPSASB consultation documents on leases

18 Jan 2021

The International Public Sector Accounting Standards Board (IPSASB) has released an exposure draft on leases and a request for information on concessionary leases and other arrangements similar to leases.

EFRAG endorsement status report 14 January 2021

14 Jan 2021

The endorsement status report has been updated to reflect that the European Union has formally adopted 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)' published by the IASB in August 2020.

European Union formally adopts IBOR 2 amendments

14 Jan 2021

The European Union has published a Commission Regulation endorsing 'Interest Rate Benchmark Reform — Phase 2 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16)'.

Academics and the post-implementation reviews of IFRS 9, IFRS 15, and IFRS 16

12 Jan 2021

The IFRS Foundation is offering three webinars aimed at identifying how academics can contribute to the post-implementation reviews of IFRS 9 'Financial Instruments', IFRS 15 'Revenue from Contracts with Customers', and IFRS 16 'Leases'.

UK adopts IFRS amendments for IBOR Phase 2 and amendments to IFRS 4

07 Jan 2021

After the end of the transition period on 31 December 2020, the UK ceased to apply EU law. IFRS Standards as adopted by the EU were brought into UK law, meaning that EU-IFRS for UK companies was effectively frozen at that point and a new mechanism for UK adoption of IFRS Standards came into effect.

HM Treasury issues new financial reporting manual (FReM)

05 Jan 2021

HM Treasury has issued a revised version of the government financial reporting manual (FReM) 2021-22.

EFRAG draft comment letter on the IASB's proposed amendment to IFRS 16

22 Dec 2020

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB exposure draft ED/2020/4 'Lease Liability in a Sale and Leaseback (Proposed amendment to IFRS 16)'.

IFRS Foundation publishes IFRS Taxonomy update

17 Dec 2020

The IFRS Foundation has published 'IFRS Taxonomy 2020 — Update 2 'Interest Rate Benchmark Reform — Phase 2''.

Deloitte IFRS Masterclass 2020

07 Dec 2020

On 8-10 December 2020, Deloitte Middle East offers the IFRS Masterclass 2020 as an online event. There is no charge for attending, however, prior registration is required.

Need to know — IASB proposes to amend IFRS 16 Leases to clarify the measurement of lease liabilities in sale and leaseback transactions

07 Dec 2020

This Need to know addresses the proposed amendment to IFRS 16 Leases set out in Exposure Draft ED/2020/4 'Lease Liability in a Sale and Leaseback — Proposed amendment to IFRS 16' published by the International Accounting Standards Board in November 2020.

IASB publishes proposed amendment to IFRS 16

27 Nov 2020

The International Accounting Standards Board (IASB) has published an exposure draft 'Lease Liability in a Sale and Leaseback (Proposed amendment to IFRS 16)' that aims at clarifying how a seller-lessee should apply the subsequent measurement requirements in IFRS 16 to the lease liability that arises in a sale and leaseback transaction. Comments are requested by 29 March 2021.

We comment on the tentative agenda decision on sale and leaseback in a corporate wrapper

24 Nov 2020

We have commented on the IFRS Interpretations Committee's publication in the September 2020 'IFRIC Update' of the tentative decision not to take onto the Committee’s agenda the request for clarification on the applicability of the sale and leaseback requirements in IFRS 16 to a transaction in which an entity sells its equity interest in a subsidiary that holds one asset and leases that asset back.

Deloitte comment letter on the tentative agenda decision on sale and leaseback in a corporate wrapper

24 Nov 2020

We agree that the IFRS Interpretations Committee’s conclusions as laid out in the agenda decision reflect the requirements of IFRS 10 and IFRS 16 in relation to the specific fact pattern presented therein. However, we strongly suggest that in addition to this decision the Board takes on a broader project to address the treatment of the sale of corporate wrappers, in particular when, if ever, these should be accounted for as sales of assets rather than subsidiaries.

Governance in brief - FRC issues advice on annual reports for 2020/21 reporting season

23 Nov 2020

FRC issues advice on annual reports for 2019/20 reporting season

Correction list for hyphenation

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