IFRS 16 - Leases


The IASB has issued the new leases standard, IFRS 16 which come into effect on 1 January 2019. Virtually every company uses rentals or leasing as a means to obtain access to assets and will therefore be affected by the new standard.

The new requirements eliminate nearly all off balance sheet accounting for leases and redefine many commonly used financial metrics such as the gearing ratio and EBITDA. This will increase comparability, but may also affect covenants, credit ratings, and borrowing costs.

The new standard may affect lessor’s business models, as lease needs and behaviours of lessees may change, and may also accelerate existing market developments in leasing such as an increased focus on services rather than physical assets.

These changes will also require significantly more data around their leases than before, which may have far-reaching impact on lessee’s business processes, systems and controls.

The earlier you begin to understand what impact the new standard may have on your organisation the better prepared you will be in implementing.

Learning Outcomes:

On completion of this course, you will have a greater understanding of:

  • the current treatment of IAS 17
  • the problems of IAS 17
  • the key requirements of IFRS 16
  • the issues associated with implementing IFRS 16


Authored by: Lincoln Miles

Lincoln Miles is a financial reporting consultant and trainer specialising in IFRS, US GAAP and UK GAAP. He has worked as an auditor for PwC, has been a presenter and technical author for BPP and provides bespoke consultancy and training to companies throughout Europe.

CPD Points: 1

CPD Duration (hours): 1

Access: 12 months from purchase date

Price: £30.00 (excludes VAT)