BC299 The IASB considered whether the transition relief for lessees in paragraphs C2-C19 of IFRS 16 should also apply to lessees applying IFRS 1 First-time Adoption of International Financial Reporting Standards.

BC300 The IASB decided that a first-time adopter of IFRS should be permitted to apply some of the transition reliefs available to an existing IFRS preparer. This is because first-time adopters will face issues similar to those faced by existing IFRS preparers, and the transition requirements provide relief when first applying the requirements of IFRS 16. However, the IASB decided that a first-time adopter is not permitted to apply those transition reliefs that depend upon the lease having previously been accounted for applying IAS 17. This is because the IASB is not aware of, nor is it possible to consider, the accounting for leases required by every other GAAP. The amounts recognised in accordance with other GAAPs could be significantly different from the amounts recognised applying IAS 17 and IFRS 16.