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IASB issues new leases standard

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The International Accounting Standards Board (IASB or Board) issued IFRS 16 Leases (IFRS 16 or the new standard), which requires lessees to recognise assets and liabilities for most leases. For lessors, there is little change to the existing accounting in IAS 17 Leases. The IASB issued its standard as part of a joint project with the Financial Accounting Standards Board (FASB). The FASB has not yet issued its new standard, but it is also expected to require lessees to recognise most leases on their balance sheets.

What you need to know:

  • „The IASB issued a new standard that requires lessees to recognise most leases on their balance sheets.
  • „Lessees will have a single accounting model for all leases, with certain exemptions.
  • „Lessor accounting is substantially unchanged.
  • „The new standard will be effective from 1 January 2019 with limited early application permitted.
To see our take on the latest announcement, please click the link below for EY’s summary document.

John McCormack

FSO Ireland Assurance Lead
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