IFRS 16: guides and lease calculator

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• Lease calculatorExcel downloadIFRS 16 and ASC 842: lease liability, right-of-use asset, schedules, journal entries, modifications, and the ASC 842 operating lease cost and amortization.

10 guides

• IFRS 16 leases explained3 minute readIFRS 16 explained: lessees put almost every lease on the balance sheet as a right-of-use asset and liability, with the exemptions and the effect on the numbers.
• IFRS 16 lessee accounting step by step3 minute readIFRS 16 lessee accounting step by step: measuring the lease liability and right-of-use asset, the schedule and journal entries, with a full worked example.
• Is it a lease? The IFRS 16 identification test3 minute readHow to tell whether a contract contains a lease under IFRS 16: the identified asset, substitution rights, economic benefits and direction of use, with examples.
• Lease term, extension and termination options under IFRS 163 minute readHow to set the lease term under IFRS 16: the non-cancellable period, options reasonably certain to be used, the factors to weigh and reassessment.
• The IFRS 16 discount rate: incremental borrowing rate3 minute readHow to choose the IFRS 16 discount rate: the rate implicit in the lease, the incremental borrowing rate, how to build it up, and its effect on the liability.
• Short-term and low-value lease exemptions under IFRS 163 minute readThe two optional IFRS 16 exemptions for lessees: short-term leases of 12 months or less and leases of low-value assets, how to apply them, and what to disclose.
• Lease modifications under IFRS 163 minute readHow IFRS 16 treats lease modifications: when a change is a separate lease, how to remeasure the liability and adjust the asset, and decreases in scope.
• Sale and leaseback under IFRS 163 minute readHow IFRS 16 accounts for a sale and leaseback: whether the transfer is a sale, the right-of-use asset, the partial gain, off-market terms and failed sales.
• Lessor accounting under IFRS 16: finance and operating leases3 minute readHow lessors account for leases under IFRS 16: classifying finance and operating leases, the net investment in the lease, rental income, with examples.
• IFRS 16 disclosure checklist3 minute readWhat IFRS 16 requires lessees and lessors to disclose: right-of-use assets, lease expenses, cash outflows, maturity analyses and qualitative information.

About these guides

The guides explain the standard in our own words, with our own examples, and point to the paragraphs they rely on. They are general information, not advice for your situation. Read them alongside the standard itself, and check when your regulator adopts it.