(paragraph B1)

BC82 The 2010 and 2013 Exposure Drafts would not have precluded an entity from applying the leases requirements at a portfolio level. However, many entities noted that the 2011 Exposure Draft Revenue from Contracts with Customers proposed guidance on applying its requirements at a portfolio level (which has subsequently been confirmed in IFRS 15). These stakeholders asked whether the absence of guidance on this subject meant that an entity would not be permitted to apply IFRS 16 at a portfolio level.

BC83 In response to these concerns, the IASB decided to add application guidance on portfolios to IFRS 16. The guidance clarifies that an entity is permitted to apply the requirements in IFRS 16 to a portfolio of leases with similar characteristics, if the entity reasonably expects that the effects on the financial statements of applying IFRS 16 to the portfolio would not differ materially from applying IFRS 16 to the individual leases within that portfolio. This approach may be particularly useful for lessees with a large number of similar leases.