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Lessee accounting ASC 842 requires a lessee to classify a lease as either a finance or operating lease. Interest and amortization expense are recognized for finance leases while only a single lease expense is recognized for operating leases, typically on a straight-line basis. Under IFRS 16, lessees will account for all leases in a manner ...
IFRS 16 Leases requires lessees to recognise assets and liabilities for most leases. The International Accounting Standards Board (IASB or the Board) issued the standard after joint deliberations with the Financial Accounting Standards Board (FASB), which issued a similar standard (ASC 842 Leases).
understanding of IFRS 16’s detailed guidance on lease modifications is currently essential, and many lessees have taken advantage of the new practical expedient for rent concessions. This publication provides an overview of IFRS 16’s accounting models for lessees and lessors.
The IFRS 16 and ASC 842 guidance on identifying whether arrangements are or contain leases is nearly identical. Notwithstanding this, application of the guidance may require significant judgment, and, as a result, the practical application of the principles to similar transactions may differ.
This Update, along with IFRS 16, Leases, are the results of the FASB’s and the International Accounting Standards Board’s (IASB’s) efforts to meet that objective and improve financial reporting.
IFRS 16 – An overview: The new normal for lease accounting. Download. Handbook. Core concepts. Ongoing application. Sector-specific. In-depth application guidance on the new leasing standard.
In January 2016 the Board issued IFRS 16 Leases. IFRS 16 replaces IAS 17, IFRIC 4, SIC-15 and SIC-27. IFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of leases. In May 2020 the Board issued Covid-19-Related Rent Concessions, which amended IFRS 16.
