IFRS 16 – Illustrative disclosures

IFRS 16 Leases requires lessees to recognise new assets and liabilities under an on-balance sheet accounting model that is similar to current finance lease accounting.

Our illustrative disclosures supplement (PDF 1.8 MB) will help you to navigate the new requirements and enable you to focus on the information that is relevant to users of financial statements.

IFRS 16 Leases supplement

This supplement focuses on the disclosure requirements in IFRS 16 Leases, which are due to become effective for annual periods beginning on or after 1 January 2019.

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General disclosure objective

IFRS 16 contains both quantitative and qualitative disclosure requirements. The objective of the disclosure requirements is to give a basis for users of financial statements to assess the effect that leases have on the financial statements.

Entities should focus on the disclosure objective, not on a fixed checklist.

Illustrative disclosures

IFRS 16 offers a range of transition options. This guide illustrates the modified retrospective approach, using a number of the practical expedients available under this approach, and the retrospective method.