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IFRS 16 - Leases

The time to act is now. So get it on balance!

IFRS 16 sets out a comprehensive model for the identification of lease arrangements and their treatment in the financial statements of both lessees and lessors. One of the most notable aspects of IFRS 16 is that the lessee and lessor accounting models are asymmetrical.

About the standard

While the IASB has retained IAS 17’s finance lease/operating lease distinction for lessors, the distinction is no longer relevant for lessees. All lease contracts, including renting contracts, will be recognised on the balance sheet of the lessees, with some exceptions in limited circumstances.

The standard will have broad implications for many stakeholders and metrics, including finance departments, property teams, banking covenants, remuneration schemes, and regulatory compliance.

IFRS 16 will replace IAS 17 for reporting periods beginning on or after 1 January 2019 with a retrospective application by default.

IFRS in CFO Magazine

How Deloitte can help

Impact assessment

In line with your individual requirements and preliminary analysis, we develop the best approach to introduce the new leasing standard at your company.

Contract review

List all contracts that are affected under the new leasing standard and develop a leasing database with relevant terms and conditions.

Systems & processes

Identify the gaps in your current system. Implement the lease accounting and lease financing guidelines.

Change in strategy

Assist you in identifying the best strategy for future leasing contracts and contract terms.

Communication

We support you in communicating the impact of the new leasing standard to external parties and within your organization to different stakeholders.

Impact on income statement and balance sheet

Key phases to a successful implementation

IFRS 16 - Leases: Other publications

IFRS 16 in-depth analysis

The latest edition of the IFRS informatiebrief | Bulletin d'information IFRS, issued by the Belgian IFRS Centre of Excellence is primarily dedicated to the new IFRS standard on leases.

IFRS 16 industry insights

The below brochures explain how the new leasing standard IFRS 16 will affect specific industries:

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