IFRS Newsletter: Insights into IFRS 16
November 01, 2021
IFRS 16 represents the first major overhaul of lease accounting in over 30 years. The Standard will affect most companies that report under IFRS and are involved in leasing, and will have a substantial impact on the financial statements of lessees of property and high value equipment.
IFRS 16 changes the definition of a lease and provides guidance on how to apply this new definition. As a result, some contracts that do not contain a lease today will meet the definition of a lease under IFRS 16, and vice versa.
In this newsletter, Grant Thornton Vietnam would like to provide details on the definition of a lease under IFRS 16 and three key evaluations to conclude that a contract is or contains a lease.