IFRS 16: Leases


Leasing is an important financial solution used by many organisations. It enables companies to use property, plant, and equipment without needing to incur large initial cash outflows. Under existing rules, lessees generally account for lease transactions either as off-balance sheet operating or as on balance sheet finance leases. The new standard requires lessees to recognise nearly all leases on the balance sheet which will reflect their right to use an asset for a period of time and the associated liability to pay rentals. The lessor’s accounting model largely remains unchanged.

Hear directly from our IFRS 16 experts in our latest video series

Find out how companies can prepare for the implementation of IFRS 16 Leases

This video explores how companies are progressing in implementing the IFRS 16 Leases standard and answers questions on how to apply some of the requirements of the standard.


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PwC's Derek Carmichael, Jay Tahtah and Jessica Taurae discuss hot topics for the new standard's implementation, including discount rates, lease terms and transition.

IFRS 16 publications

Impact of IFRS 16 on other standards

Impact of IFRS 16 on other standards

After adopting IFRS 16, many companies will issue interim financial statements under IAS 34 before preparing the first annual financial statements. These interims will be the first financial statements applying IFRS 16, and so they will need additional disclosures to explain the changes. Investors, regulators and other stakeholders might focus on these disclosures

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PwC Leasing Shortcuts

Definition of a Lease according to IFRS 16


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This short animation provides a quick overview of the new definition of a lease, and explains how even coffee-makers might be captured! A practical illustration to show that the new standard might impact more companies and contracts than you think, and essential viewing for all.

IFRS Standardsbearer


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New accounting standards have been finalised by the International Accounting Standards Board for Financial Instruments (IFRS 9), Revenue (IFRS 15) and Leases (IFRS 16). They come into effect in 2018/19. Our IFRS Standardsbearer report highlights where the new standards may affect your existing IFRS financial statements and gives your implementation projects a fast start.

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Contact us

Jessica Taurae

Partner, IFRS specialist, PwC United Kingdom

Tel: +44 207 2125700

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