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. 

Outlines

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 recognize 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.