IASB IFRS 16

IFRS (International Finance Reporting Standards) 16 is a document issued by the IASB that specifies how an IFRS reporter will recognize leases. This guidance is used by companies that report expenses under international accounting guidelines.

The IFRS 16 standard has the same goals as the FASB ASC 842 standard: require that previously unrecorded off-balance sheet obligations be brought more prominently to light by presenting lease liabilities on the face of the balance sheet.

IFRS 16 was issued in January 2016 and applies to annual reporting periods beginning on or after 1 January 2019.

Under the IFRS 16 guidance, organizations can opt to exempt leases that are less than 12 months in duration or that have a value of less than $5000 US equivalent.