(paragraphs 3-4)

BC67 The IASB decided that the scope of IFRS 16 should be based on the scope of the leases requirements in IAS 17. IAS 17 applies to all leases, with specified exceptions.

BC68 Accordingly, IFRS 16 contains scope exceptions for:

(a) leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources. IFRS 6 Exploration for and Evaluation of Mineral Resources specifies the accounting for rights to explore for and evaluate mineral resources.

(b) leases of biological assets within the scope of IAS 41 Agriculture held by a lessee. IAS 41 specifies the accounting for biological assets, other than bearer plants, which are within the scope of IAS 16. Consequently, leases of bearer plants such as orchards and vineyards held by a lessee are within the scope of IFRS 16.

(c) service concession arrangements within the scope of IFRIC 12 Service Concession Arrangements (see paragraph BC69).

(d) licences of intellectual property granted by a lessor within the scope of IFRS 15. There are specific requirements relating to those licences within IFRS 15.

(e) leases of intangible assets held by a lessee (see paragraphs BC70-BC71).