IFRS 16 (International Financial Reporting Standard 16) is a comprehensive accounting standard issued by the International Accounting Standards Board (IASB) for lease accounting. It aims to bring transparency and consistency to how leases are reported in financial statements. Under IFRS 16, lessees are required to recognise almost all leases on their balance sheet, reflecting the right-of-use asset and the corresponding lease liability. This replaces the previous IAS 17 standard, which allowed for operating leases to be kept off-balance sheet.
IFRS 16 is applicable to all entities that prepare their financial statements in accordance with International Financial Reporting Standards (IFRS). This includes:
IFRS 16 became effective for annual reporting periods beginning on or after January 1, 2019. Entities need to apply IFRS 16 at the start of their annual reporting period if they report under IFRS. Transitioning to IFRS 16 requires adjustments to the opening balance of retained earnings at the date of initial application.
Ensuring compliance with IFRS 16 involves several steps
LeaseTracker is a powerful lease accounting software designed to help businesses navigate the complexities of IFRS 16. Our platform provides tools to manage, track, and report leases accurately and efficiently, ensuring full compliance with IFRS 16 requirements. Key features include:
Automated calculations for right-of-use assets and lease liabilities.
Centralised lease management for easy tracking and updates.
Comprehensive reporting capabilities to meet financial statement requirements.
User-friendly interface for seamless integration into your existing workflows.
Stay compliant with IFRS 16 and simplify your lease accounting processes with LeaseTracker. For more information or to request a demo, visit our website or contact our support team.
LeaseTracker: Your Partner in Lease Accounting Compliance.
Our IFRS 16 guide is ideal for those looking to understand more about the requirements of the standard. The guide touches on the basics of how to apply the standard and also includes practical examples.
LeaseTracker is a powerful lease accounting software designed to help businesses navigate the complexities of IFRS 16. Our platform provides tools to manage, track, and report leases accurately and efficiently, ensuring full compliance with IFRS 16 requirements. Key features include:
Automated calculations for right-of-use assets and lease liabilities.
Centralised lease management for easy tracking and updates.
Comprehensive reporting capabilities to meet financial statement requirements.
User-friendly interface for seamless integration into your existing workflows.
Stay compliant with IFRS 16 and simplify your lease accounting processes with LeaseTracker. For more information or to request a demo, visit our website or contact our support team.
LeaseTracker: Your Partner in Lease Accounting Compliance.
