EU adopts amendments to IFRS 16

The European Union published Commission Regulation (EU) No. 2023/2579 of 20 November 2023 amending Regulation (EU) No. 2023/1803 as regards to International Financial Reporting Standard 16 (IFRS 16) in the Official Journal of 21 November 2023. This regulation adopts amendments to IFRS 16 (see Express Accounting News 36/2022). The amendments, which were published by the International Accounting Standards Board (IASB) on 22 September 2022, relate to the accounting treatment of lease liabilities from sale and leaseback transactions. Accordingly, following a sale, a seller/lessee must measure the lease liability in such a way that not any amount in profit or loss resulting from the retained right of use is recognised. 

The amendments are to be applied at the latest to financial years beginning on or after 1 January 2024.