Oct 022016
(First of two parts)
After a long wait, the new accounting standard on leases, International Financial Reporting Standards (IFRS) 16, was finally issued by the International Accounting Standards Board (IASB) in January 2016. IFRS 16 will replace the currently used International Accounting Standards (IAS) 17, Leases. It will have a significant impact on lessees as they will be required to recognize most of their leases on their balance sheets. On the other hand, there will be little or virtually no impact for the lessors as their accounting for their lease contracts will be substantially the same.