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  1. IFRS 16: Leases
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IFRS 16: Leases

Comparing proposed amendment...
Introduction (IN1-IN15)
Objective (paras. 1-2)
Scope (paras. 3-4)
Recognition exemptions (paragraphs B3-B8) (paras. 5-8)
Identifying a lease (paragraphs B9-B33) (paras. 9-17)
Lease term (paragraphs B34-B41) (paras. 18-21)
Lessee (paras. 22-60A)
Lessor (paras. 61-97)
Sale and leaseback transactions (paras. 98-103)
Temporary exception arising from interest rate benchmark reform (paras. 104-106)
Appendix A Defined terms
Appendix B Application guidance
Appendix C Effective date and transition
Appendix D Amendments to other Standards
Approval by the Board of IFRS 16 Leases issued in January 2016
Approval by the Board of Covid-19-Related Rent Concessions issued in May 2020
Approval by the Board of Covid-19-Related Rent Concessions beyond 30 June 2021 issued in March 2021
Approval by the IASB of Lease Liability in a Sale and Leaseback issued in September 2022
IFRS 16: Basis for Conclusions
Introduction (paras. BC1-BC2)
Overview (paras. BC3-BC4)
Why the need to change previous accounting? (paras. BC3-BC4)
Background (paras. BC5-BC18)
The approach to lease accounting (paras. BC19-BC40)
BC19-BC21
Rights and obligations arising from a lease that create assets and liabilities for the lessee (paras. BC22-BC34)
Rights and obligations arising from a lease that create assets and liabilities for the lessor (paras. BC35-BC40)
The lessee accounting model (paras. BC41-BC56)
The lessor accounting model (paras. BC57-BC66)
Scope (paragraphs 3-4) (paras. BC67-BC81)
BC67-BC68
Service concession arrangements (para. BC69)
Intangible assets (paras. BC70-BC71)
Onerous contracts (para. BC72)
Subleases (para. BC73)
Inventory (para. BC74)
Non-core assets (paras. BC75-BC77)
Long-term leases of land (paras. BC78-BC79)
Leases of investment property at fair value (para. BC80)
Embedded derivatives (para. BC81)
Portfolio application (paragraph B1) (paras BC82-BC83)
Materiality (paras. BC84-BC86)
Recognition exemptions (paragraphs 5-8) (paras. BC87-BC104)
Short-term leases (paras. BC87-BC97)
Leases of low-value assets (paras. BC98-BC104)
Identifying a lease (paragraphs 9-17) (paras. BC105-BC140)
Definition of a lease (paragraphs 9-11) (paras. BC105-BC126)
Cancellable leases (paras. BC127-BC129)
Combination of contracts (paragraph B2) (paras. BC130-BC132)
Separating components of a contract (paragraphs 12-17 and B32-B33) (paras. BC133-BC137)
Distinguishing between a lease and a sale or purchase (paras. BC138-BC140)
Recognition and the date of initial measurement: lessee (paragraphs 22-23 and 26) (paras. BC141-BC144)
Inception versus commencement of a lease (paras. BC141-BC144)
Measurement: lessee (paragraphs 23-46B) (paras. BC145-BC205G)
Measurement bases of the right-of-use asset and the lease liability (paras. BC145-BC146)
Initial measurement of the right-of-use asset (paragraphs 23-25) (paras. BC147-BC151)
Initial measurement of the lease liability (paras. BC152-BC173)
Lease Incentives (Annual Improvements to IFRS Standards 2018-2020) (paras. BC173A-BC173B)
Subsequent measurement of the right-of-use asset (paragraphs 29-35) (paras. BC174-BC181)
Subsequent measurement of the lease liability (paragraphs 20-21 and 36-43) (paras. BC182-BC199)
Lease modifications (paragraphs 44-46B) (paras. BC200-BC205G)
Presentation: lessee (paragraphs 47-50) (paras. BC206-BC211)
Statement of financial position (paragraph 47-48) (paras. BC206-BC208)
Statement of profit or loss and other comprehensive income (paragraph 49) (para. BC209)
Statement of cash flows (paragraph 50) (paras. BC210-BC211)
Disclosure: lessee (paragraphs 51-60) (paras. BC212-BC230)
BC212-BC214
Overall disclosure objective (paragraph 51) (paras. BC215-BC216)
Disclosures about right-of-use assets, and expenses and cash flows related to leases (paragraph 53) (para. BC217)
Maturity analysis (paragraph 58) (paras. BC218-BC223)
Additional disclosures (paragraph 59) (paras. BC224-BC227)
Presentation of lessee disclosures in the notes to the financial statements (paragraphs 52 and 54) (para. BC228)
Other approaches considered for lessee disclosure (paras. BC229-BC230)
Lessor: accounting (paragraphs 61-97) (paras. BC231-BC240A)
BC231
Subleases (paras. BC232-BC236)
Initial direct costs (paragraphs 69 and 83) (para. BC237)
Lease modifications (paragraphs 79-80 and 87) (paras. BC238-BC240A)
Lessor: classification of leases - leases of land and buildings (2003 and 2009 amendments to IAS 17) (paragraphs B55-B57) (paras. BCZ241-BCZ250)
Land element in long-term leases (paras. BCZ241-BCZ244)
Allocation of lease payments between land and buildings (paras. BCZ245-BCZ247)
Impracticability of split between land and buildings (para. BCZ248)
Exception to the requirement to separate the land and buildings elements (paras. BCZ249-BCZ250)
Lessor: disclosure (paragraphs 89-97) (para. BC251-BC259)
BC251
Table of income (paragraphs 90-91) (para. BC252)
Information about residual asset risk (paragraph 92(b)) (paras. BC253-BC255)
Information about assets subject to operating leases (paragraphs 95-96) (para. BC256)
Maturity analyses (paragraphs 94 and 97) (paras. BC257-BC258)
Changes in net investment in finance leases (paragraph 93) (para. BC259)
Sale and leaseback transactions (paragraphs 98-103) (paras. BC260-BC267J)
BC260
When a sale occurs (paras. BC261-BC265)
Gain or loss on a sale and leaseback (paras. BC266-BC267)
Subsequent measurement (paras. BC267ZA-BC267ZF)
Temporary exception arising from interest rate benchmark reform (paras. BC267A-BC267J)
Effective date and early application (paragraph C1) (paras. BC268-BC272)
Transition (paragraphs C2-C20E) (paras. BC273-BC294A)
Definition of a lease (paragraphs C3-C4) (paras. BC273-BC274)
Lessees (paragraphs C5-C13) (paras. BC275-BC288)
Lessors (paragraphs C14-C15) (paras. BC289-BC291)
Sale and leaseback transactions before the date of initial application (paragraphs C16-C18) (paras. BC292-BC294)
Lease liability in a sale and leaseback (paragraph C20E) (para. BC294A)
Consequential amendments (paras. BC295-BC302)
Investment property (para. BC295)
Business combinations (paras. BC296-BC298)
Transition for first-time adopters of IFRS (para. BC299-BC302)
Comparison with FASB decisions (para. BC303-BC310)
BC303
Lessee accounting model (paras. BC304-BC307)
Recognition exemption for leases of low-value assets (para. BC308)
Reassessment of variable lease payments (para. BC309)
Lessor accounting (para. BC310)
Dissenting Opinions
Appendix - Amendments to the Basis for Conclusions on other Standards
IFRS 16: Illustrative Examples
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