BC251

(paragraphs 89-97)

BC251 IFRS 16 enhances the previous lessor disclosure requirements in IAS 17 to enable users of financial statements to better evaluate the amount, timing and uncertainty of cash flows arising from a lessor’s leasing activities. The enhancements are in response to views expressed by some stakeholders that the lessor accounting model in IAS 17 did not provide sufficient information relating to all elements of a lessor’s leasing activities. In particular, some investors and analysts requested additional information about a lessor’s exposure to residual asset risk.