IFRS 16 Leases requires lessees to recognise new assets and liabilities under an on-balance sheet accounting model that is similar to current finance lease accounting.
Key metrics will be affected by the recognition of new assets and liabilities, and differences in the timing and classification of lease income/expense.
Our illustrative disclosures supplement (PDF 1.8 MB) will help you to navigate the new requirements and enable you to focus on the information that is relevant to users of financial statements.
General disclosure objective
IFRS 16 contains both quantitative and qualitative disclosure requirements. The objective of the disclosure requirements is to give a basis for users of financial statements to assess the effect that leases have on the financial statements.
Entities should focus on the disclosure objective, not on a fixed checklist.
IFRS 16 offers a range of transition options. This guide illustrates the modified retrospective approach, using a number of the practical expedients available under this approach, and the retrospective method.
Find out more
Visit our IFRS – Leases hot topics page for more insight on lease accounting under IFRS.
For an illustration of the pre-implementation disclosures that need to be included in 2017 financial statements, see our Guide to annual financial statements – Illustrative disclosures.
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