BLM18000 - IFRS 16 leases: IFRS 16 lessees: Example
The accounting for lessees under IFRS 16 is the same whatever the nature of the underlying asset is. The following example will look at the accounting for a property lease under IFRS 16.
The example will cover the accounting by the lessee under IFRS 16 for the ROU asset and the lease liability.
The accounting from a lessor’s perspective under IFRS 16 is broadly similar to lessor accounting under FRS 102 and will follow the rules for ‘operating’ lease accounting or ‘finance’ lease accounting depending on where the risk lies– see BLM12000 for rules for operating leases and BLM13000 for rules for finance leases.