IFRS 16

International Financial Reporting Standard 16, dealing with leases.

IFRS 16 is effective from 1 January 2019.

In broad terms, it requires all lease liabilities to be accounted for 'on balance sheet', by companies reporting under international financial reporting standards.

This change will remove the former distinction between operating leases and finance leases.

IFRS 16 replaces IAS 17: Leases.

Issued by the International Accounting Standards Board.

See also

• Finance lease
• Operating lease
• IAS 17
• Lease
• International Financial Reporting Standards