Article: IFRS 16 Leases
03 May 2017
IFRS 16 Leases brings significant changes in accounting requirements for lease accounting, primarily for lessees. IFRS 16 replaces the existing suite of standards and interpretations on leases:
- IAS 17 Leases
- IFRIC 4 Determining whether an Arrangement contains a Lease
- SIC 15 Operating Leases – Incentives
- SIC 27 Evaluating the Substance of Transactions Involving the Legal Form of a Lease.
This BDO In Practice sets out the requirements of IFRS 16 in relation to the classification and measurement of leases from the perspective of lessees and lessors and compares those requirements to the previous standards, primarily IAS 17. It should be noted that the guidance relating to lessor accounting remains largely unchanged from IAS 17, so the focus of this publication is on the requirements for leasees.