IFRS 16 — Leases

Overview:

IFRS 16 specifies how an IFRS reporter will recognize, measure, present and disclose

leases. The standard provides a single lessee accounting model, requiring lessees to

recognise assets and liabilities for all leases unless the lease term is 12 months or less or

the underlying asset has a low value. Lessors continue to classify leases as operating or

finance, with IFRS 16’s approach to lessor accounting substantially unchanged from its

predecessor, IAS 17.

Objective:

IFRS 16 establishes principles for the recognition, measurement, presentation and

disclosure of leases, with the objective of ensuring that lessees and lessors provide relevant

information that faithfully represents those transactions.