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IFRS 16 – Applicable from 1 January 2019

From 1 January 2019, the long-awaited accounting standard on leases, IFRS 16, became mandatory and therefore replaced IAS 17.   IFRS 16 was originally issued in January 2016 and has already been covered in Financial Accounting and Financial Reporting because early adoption was permitted. However, many companies will only be using this standard for the first time now.   Leases provide an important and flexible source of financing whereby the lessee obtains the use of an asset and incurs a liability when it enters into a lease.   However, IAS 17 made it difficult for investors...