IFRS 16 Leases will replace the existing IFRS requirements on lease accounting. The new standard is effective for periods beginning on or after 1 January 2019, with limited early application permitted.
IFRS 16 requires lessees to recognize most leases on their balance sheets. Lessees apply a single accounting model for all leases with certain exemptions. Lessor accounting is substantially unchanged. For lessees, recognizing lease-related assets and liabilities could have significant financial reporting and business implications. Entities will need to adjust their accounting policies, processes and internal controls to implement the new standard.