INTERNATIONAL FINANCIAL REPORTING STANDARD 16
17 March 2021
Accounting treatment of leases by lessees has changed fundamentally. The major objective of IFRS 16 is to
ensure that lessees and lessors provide relevant information that faithfully represents their transactions.
IFRS 16 eliminates the current dual accounting model for lessees, which distinguishes between on-balance
sheet finance leases and off-balance sheet operating leases. Instead, it introduces a single, on-balance sheet
accounting model that is similar to current finance lease accounting