IFRS 16 resources

The Financial Reporting Council (FRC) continues raise queries regarding IFRS 16 and identifies the most frequently raised areas of challenge from both its thematic and routine reviews in its Annual Review of Corporate Reporting.  This review, alongside the 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 are needed.  These include:

  • The need for entity-specific and not boiler-plate lease accounting policies.  The FRC highlights that such policies should cover all material accounting transactions such as those in relation to sale and leaseback transactions, lease incentives, items outside the scope of IFRS 16 and non-lease components.  Lessors should remember to explain the basis for classifying their leases as operating or financing.
  • Improvements in IFRS 16 disclosures.  The FRC has identified that some companies are omitting required IFRS 16 disclosures and highlights that improvements can be made to a number of disclosures including those provided by lessees with significant variable payment features, those regarding judgements around lease extension or termination options and whether an arrangement meets the definition of a lease and consistency of disclosures with those provided elsewhere in the accounts.
  • Clear explanations of material aspects of the transition adjustments from IAS 17 Leases.
  • The need for both lessees and lessors to consider the overall disclosure objective of the standard.  The FRC indicates that information in the notes, together with the information provided in the statement of financial position, statement of profit or loss and statement of cash flows, should enable users to assess the effect of leases on the financial position, financial performance and cash flows.  It indicates that this could include information about variable payment features in leases and disaggregated information about future cash flows.

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

Need to know — IASB issues IFRS 16 – Leases

14 Jan 2016

This newsletter provides a comprehensive overview of the IASB's new standard, IFRS 16 'Leases'.

IASB updates work plan

14 Jan 2016

Following the issuance of IFRS 16 yesterday, the IASB has updated its work plan.

EFRAG endorsement status report 13 January 2016

13 Jan 2016

This endorsement status report update reflects the issuance of IFRS 16 'Leases' by the IASB on 13 January 2016. It is yet to be determined when endorsement might be expected.

Robert Bruce interviews — Bringing greater clarity to leases: IFRS 16

13 Jan 2016

In this video interview, Robert Bruce talks with IASB Chairman, Hans Hoogervorst and Deloitte's Global IFRS Leader, Veronica Poole about the new Standard on lease accounting, IFRS 16. The 14-minute video interview discusses: the implications of the new Standard; its implementation; why it was required; what changes it will bring about; what companies, investors, and the capital markets need to know and understand; and the issues which they are all going to have to tackle in the coming years as a result.

Robert Bruce interviews — Bringing greater clarity to leases: IFRS 16

13 Jan 2016

In this video interview, Robert Bruce talks with IASB Chairman, Hans Hoogervorst and Deloitte's Global IFRS Leader, Veronica Poole about the new Standard on lease accounting, IFRS 16. The 14-minute video interview discusses: the implications of the new Standard; its implementation; why it was required; what changes it will bring about; what companies, investors, and the capital markets need to know and understand; and the issues which they are all going to have to tackle in the coming years as a result.

The Bruce Column — Bringing clarity to leases: The new standard

13 Jan 2016

IFRS 16, the long-awaited standard on leasing, is published. Now the task of implementing it begins. Our resident, regular columnist, Robert Bruce, takes a look at what is involved.

IASB issues new leasing standard

13 Jan 2016

The International Accounting Standards Board (IASB) has published a new standard, IFRS 16 'Leases'. The new standard brings most leases on-balance sheet for lessees under a single model, eliminating the distinction between operating and finance leases. Lessor accounting however remains largely unchanged and the distinction between operating and finance leases is retained. IFRS 16 supersedes IAS 17 'Leases' and related interpretations and is effective for periods beginning on or after 1 January 2019, with earlier adoption permitted if IFRS 15 'Revenue from Contracts with Customers' has also been applied (subject to EU endorsement).

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