Leases (IFRS 16/AASB 16) - financial reporting resources

Resources

Articles

Corporate Reporting Insights

BDO's monthly newsletter, Corporate Reporting Insights, keeps you up to date with the latest Australian and global developments in corporate financial and sustainability reporting.

Overview

Transitioning to IFRS 16 - Your options and what to do with residual balances (May 2020)
Implications of IFRS 16 on retailers (November 2017)

IFRIC agenda decisions

IFRIC agenda decision – Substitution rights in a lease (May 2023)
IFRIC agenda decision - Lessor forgiveness of lease payments (November 2022)
Latest IFRIC agenda decision – do virtual power purchase agreements contain a lease? (February 2022)
Recent agenda decisions of the IFRS Interpretations Committee (November 2021)
Think you don't have a lease - think again - implications of the IFRIC agenda decision - renewable leases (February 2020)

Identifying a lease

Identifying embedded leases (March 2024)
Expired leases in ‘hold over’ are not short-term leases (October 2023)
Month-to-month leases are not always short-term leases (September 2023)
How does the short-term lease exemption work in IFRS 16? (July 2020)
When is a lease not a lease - Does the lessee have the right to direct the use of asset? (March 2020)
When a lease is not a lease - Does the lessee obtain substantially all the economic benefits from using the asset? (December 2019)
When is a lease not a lease - Is there an identified asset? (November 2019)
When is a lease not a lease? (July 2018)
Is a novated lease a 'lease' for the employer under IFRS 16? (March 2018)

Measurement

Subsequent measurement

Are you using the correct ‘unit of account’ when testing your right-of-use assets for impairment? (September 2022)
IASB extends practical expedient for COVID-19 rent concessions until 30 June 2022 (April 2021)
Entering into a new lease contract for the same premises before the end of the lease term is a lease modification (July 2020)
Accounting relief for COVID-19-related rent concessions approved by the IASB (June 2020)
How to amend impairment models for right-of-use assets under IFRS 16 (May 2020)
Even minor amendments to leases under IFRS 16 create significant work for lessees (September 2018)

Not-for-profit entities

Great news for NFPs re peppercorn leases (April 2022)
NFPs - Lessee disclosures required even if you only have peppercorn leases measured at ‘cost’ (August 2020)
AASB clarifies what is meant by 'class of ROU asset' for concessionary (peppercorn) leases (February 2020)
Deferral of fair value requirements for peppercorn leases approved by AASB (February 2019)

Lessor and sublease accounting

Disclosures

Drafting new IFRS 16 disclosures may be a time-consuming process for lessees (August 2020)

Sale and leaseback transactions

Lease accounting and business combinations

What impact will business combinations have on your lease accounting and discount rates? (November 2023)
How does the acquirer in a business combination account for the acquiree’s lease restoration provisions? (September 2023)
How will the new leases standard impact the business combinations? (February 2020)

Impact on AFS licence requirements

ASIC allows AFS licensees to include ROU assets in NTA and other calculations for financial requirements (May 2021)

BDO Global IFRS Resources

The following publications have been produced by the BDO Global IFRS group:

► IFRS at a Glance

A high level overview of International Financial Reporting Standards (IFRSs), including International Accounting Standards and Interpretations.

IFRS 16 Leases.

► IFRS in Practice

Practical information about the application of key aspects of IFRS, including industry specific guidance.

► IFR Bulletins

Focus on latest developments in international financial reporting.

IASB issues amendments to IFRS 16 – Lease liability in a sale and leaseback (IFRB 2022 05)
COVID-19-related rent concessions beyond 30 June 2021: Extension of practical expedient – additional FAQs (IFRB 2021 08)
IASB proposes extension to COVID-19 practical expedient (IFRS 16) (IFRB 2021 05)
Accounting for rent concessions: Lessee FAQs (IFRB 2020 11)
IASB issues amendments to IFRS 16: COVID-19 related rent concessions (IFRB 2020/08)
IFRIC issues final agenda decision for an assessment of the lease term (IFRS 16) (IFRB 2019 04).

Webinars

BDO Australia conducts monthly complimentary webinars as an easy way to stay up to date with changes to accounting standards and other financial reporting developments. Recent webinars on this topic include:

Continuing challenges in lease accounting (April 2024)
The challenges of applying lease accounting practices (July 2023)
Simplifying the lease accounting process (June 2022)
Next steps after implementing AASB 16 (October 2020)
Effects of IFRS 9, 15 and 16 on business combinations and Accounting for COVID-19-related rent concessions (June 2020)
Impairment testing after the implementation of IFRS 16 (April 2020)
Leases: Issues determining the incremental borrowing rate (March 2020)
Leases: Ongoing reassessments and modifications (February 2020)
Leasons learned from implementing IFRS 16 (December 2019)
Disclosing the impact of implementing IFRS 16 (June 2019)
Practical issues when implementing IFRS 16 (January 2019)
IFRS 16 – Problem Areas (December 2018)
IFRS 16 – Risk Assessment (November 2018)
Transition to IFRS 16 (September 2018)
Recognition and measurement (October 2017)
Identifying a lease and determining the lease term (September 2017)
Overview of the new IFRS 16 Leases (February 2017).

IFRIC agenda decisions

IFRS Interpretations Committee (the Committee) agenda decisions are those issues that the Committee decided not to take onto its agenda. Although not authoritative guidance, in practice they are regarded as being highly persuasive, and all entities reporting under IFRS should be aware of these decisions because they could impact the way particular transactions and balances are accounted for. Agenda decisions on this topic include:

Definition of a lease – Substitution rights (April 2023) and FAQ
Lessor forgiveness of lease payments (IFRS 9 and IFRS 16) (September 2022) and FAQ
Economic benefits from use of a windfarm – IFRS 16 (December 2021) and eLearning and FAQ
Non-refundable value added tax on lease payments (October 2021) and eLearning and FAQ
Sale and leaseback with variable payments (June 2020) and eLearning and FAQ
Definition of a lease – decision-making rights - IFRS 16 (January 2020) and eLearning and FAQ
Determining the lease term - cancellable leases and month-to-month leases (November 2019) and eLearning and FAQ
Lessee's incremental borrowing rate (Sep 2019) and eLearning and FAQ
Subsurface rights (June 2019) and eLearning and FAQ.

Online Training

Online training resources

Improve your knowledge of accounting standards by purchasing our online training resources on a variety of financial reporting topics. Resources available on this topic include:

A seminar – a pre-recorded two-hour webinar that provides a high-level overview of the accounting standard, as well as a question and answer case study booklet
eLearning – a self-paced interactive web-based eLearning module that provides an in-depth understanding of the key aspects of the accounting standard and requires participants to read and answer questions relating to the content.

Articles

Corporate Reporting Insights

BDO's monthly newsletter, Corporate Reporting Insights, keeps you up to date with the latest Australian and global developments in corporate financial and sustainability reporting.

Overview