IFRS 16: Leases - key points of the new standard
IFRS 16 is a new standard that prescribes the way of recognizing, measuring, rendering and publishing of leases, the application of which is mandatory from 1 January 2019.
IFRS 16 replaces IAS 17 - Leases and related clarifications to IAS 17 (IFRIC 4, SIC 15 and SIC 27). The main objective of the new standard is to provide more credible information on leases disclosed in the financial statements.
The key innovations introduced by the new IFRS 16 specifically relate to tenants who will be required to recognize property and liabilities in the balance sheet under all new leases (business and financial) under the new standard.
You can read more about IFRS 16 in the Newsletter.