Applying IFRS - Accounting for leases relating to a joint operation

This publication explores some of the accounting considerations for lease arrangements (IFRS 16) in a joint operation (IFRS 11).

During 2019, the IFRS Interpretations Committee (IFRS IC) discussed a question relating to lease arrangements in a joint operation (JO) under IFRS 16 Leases. The question asked was how a lead operator (the party responsible for undertaking the operations on behalf of the other joint operators) recognises a lease liability. This publication explores the issue further and the potential considerations for arrangements between lead operators and the other joint operators (referred to as non-operator parties) of a JO. It considers how these should be assessed and accounted for under IFRS.