On 13 January 2016, the International Accounting Standards Board (IASB) published IFRS 16
Leases, completing its long-running project to overhaul lease accounting. IFRS 16 will have a
substantial impact on financial statements of lessees around the globe.

The new Standard, which is effective for accounting periods beginning on or after 1 January 2019,
requires lessees to account for leases ‘on-balance sheet’ by recognising a ‘right of use’ asset and a
lease liability. It will affect most companies that report under IFRSs and are involved in leasing, and
will have a substantial impact on the financial statements of lessees of property and high value
equipment. For many other businesses, however, exemptions for short-term leases and leases of low
value assets will reduce the impact. The table below summarises the main changes at a glance. Download full PDF article here