InternationalFinancialReportingStandard16(IFRS16)-LeasesisaglobalaccountingstandardissuedbytheInternationalAccountingStandardsBoard(IASB).ItbecameeffectiveforannualreportingperiodsbeginningonorafterJanuary1,2019.IFRS16introducesasinglelesseeaccountingmodel,requiringlesseestorecognizenearlyallleasesonthebalancesheet.ThisreplacesthepreviousIAS17standardwhichdistinguishedbetweenfinanceleases(onbalancesheet)andoperatingleases(offbalancesheet).KeyfeaturesofIFRS16include:-Lesseesmustrecognizearight-of-useassetandleaseliabilityformostleases-Leaseliabilitiesaremeasuredatthepresentvalueoffutureleasepayments-Right-of-useassetsaredepreciatedovertheleaseterm-LessoraccountingremainssimilartoIAS17withfinanceandoperatingleaseclassifications-EnhanceddisclosurerequirementsaboutleasingactivitiesThestandardaimstoprovidegreatertransparencyaboutacompany'sleaseobligationsandimprovecomparabilitybetweencompaniesthatleaseversusbuyassets.Itparticularlyimpactsindustrieswithsignificantoperatingleaseslikeretail,airlines,andtransportation.
