IFRS 16 : key points of the lease standard

Mazars Insight "IFRS 16: key points of the lease standard, in 80 questions & answers" gathers and pedagogically presents all the knowledge necessary for the accounting of leases.

28 February 2023

IFRS 16 – Leases is mandatory for financial statements prepared under IFRS from 1 January 2019. It differs from IAS 17, the previous lease standard, by introducing a single accounting model for lessees: unless an exemption offered by the Standard is used, a lease is recognised as an asset, referred to as a “right-of-use” asset, and as a liability for the lease payments over the term of the contract. For lessors, the accounting model remains essentially unchanged compared to IAS 17.

The apparent simplicity of these accounting models masks a number of implementation issues, including a significant use of judgement and sometimes complex interactions with other IFRSs. In addition, lease accounting has continued to evolve due to amendments to the Standards and agenda decisions reached by the IFRS IC. The application of IFRS 16 therefore continues to raise questions several years after its effective date.

This handbook is meant to serve as a useful tool for as many stakeholders as possible. Many topics are examined in detail to help you reflect on your practice.