IFRS 16, the IFRS standard on leases was issued in January 2016 and became effective for annual reporting periods starting on or after January 01, 2019. IFRS 16 replaces the standard IAS 17 on leases, along with the related Interpretations.
IFRS 16 changes the accounting substantially for lessees. The new standard eliminates a lessee’s classification of leases as either operating leases or finance leases. Instead, as per the new standard, almost all leases are "capitalized" by recognizing a lease liability and right-of-use asset on the balance sheet. There is little change for lessors. IFRS 16 will increase visibility of companies’ lease commitments and better reflect economic reality. The standard will also make it easier for users of financial statements to compare companies that lease their assets with companies that borrow money to buy their assets, creating a more level playing field.
Effective Date: January 01, 2019
Keywords: International, Accounting, Banking, IFRS 16, Leases, Operating Lease, Finance Lease, IFRS
Previous ArticlePRA Statement on Proposals for Application of SM&CR to Firms in TPR
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB published a guide that sets out the supervisory approach to consolidation in the banking sector.
The SRB Chair Elke König published an article setting out work priorities for 2021.
FDIC has selected 11 technology companies—including BearingPoint, Fed Reporter, Inc, and S&P Global Market Intelligence, LLC—for inclusion in the third and final phase of the rapid prototyping competition.