When IFRS 16 ‘Leases’ was released it responded to many of the criticisms that were directed at the standard that preceded it. In summary, it became a fit for purpose leasing standard, providing insights that investors never previously had.
IFRS 16 applies to almost any reporting entity that is involved in leasing. It has a substantial impact on the financial statements of lessees of property and high value equipment because it requires lessors to account for leases in their statement of financial position by recognising a ‘right-of-use’ asset and a corresponding lease liability.
Our Insights into IFRS 16 series summarises key areas of the Standard and provides guidance on those areas that are challenging to implement in practice.
To discuss any leasing queries in further detail please contact your local member firm.