(paragraphs 95-96)

BC256 The IASB observed that a lessor accounts for assets leased under operating leases similarly to owned assets that are held and used (for example, in the lessor’s operations). However, leased and owned assets are typically used for different purposes - ie leased assets generate rental income rather than contributing towards any other revenue-generating activity of the lessor. For that reason, the IASB concluded that users of financial statements would benefit from obtaining information about leased assets that generate rental income separately from owned assets held and used by the lessor. Consequently, IFRS 16 requires a lessor to disaggregate each class of property, plant and equipment into assets subject to operating leases and assets not subject to operating leases.