BC72 The IASB decided not to specify any particular requirements in IFRS 16 for onerous contracts. The IASB made this decision because:
(a) for leases that have already commenced, no requirements are necessary. After the commencement date, an entity will appropriately reflect an onerous lease contract by applying the requirements of IFRS 16. For example, a lessee will determine and recognise any impairment of right-of-use assets applying IAS 36 Impairment of Assets.
(b) for leases that have not already commenced, the requirements for onerous contracts in IAS 37 Provisions, Contingent Liabilities and Contingent Assets are sufficient. The requirements in IAS 37 apply to any contract (and hence any lease contract) that meets the definition of an onerous contract in that Standard.