IFRS 16 Leases — Standard Overview
The complete accounting standard for lease recognition, measurement, presentation, and disclosure. Effective for periods beginning on or after 1 January 2019.
Scope & Exclusions
Understand which contracts fall under IFRS 16 and which are specifically excluded.
Identifying a Lease
The control test: identified asset, economic benefits, and right to direct use.
Lessee Accounting
Initial and subsequent measurement of the ROU asset and lease liability.
Lessor Accounting
Operating vs. Finance lease classification and accounting consequences.
Sale & Leaseback (IFRS 16.100)
Qualifying conditions and resulting gain/loss and ROU asset proportioning.
Disclosure Requirements
Quantitative ROU asset reconciliation, maturity analysis, and presentation.
Exemptions
Short-term leases and leases of low-value assets recognition exemptions.
Key Definitions
Commencement date, Incremental Borrowing Rate (IBR), Lease term, and more.
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