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IFRS 16 Leases

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Track :

Business

Lessons no : 25

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Lessons | 25


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4.4
21 Reviews
Yosef Berhanu Takiso

Awesome 2024-08-12

Bitew

It was so nice 2024-07-29

Tagesse Erengo Ejjamo

Thank you very much for this golden opportunity 2024-07-28

Urvi Jethwa

Lessons are so helpful and providing a detail understanding on lease. It should cover embedded lease as well. 2024-02-27

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IFRS 16 is an International Financial Reporting Standard promulgated by the International Accounting Standards Board providing guidance on accounting for leases. IFRS 16 was issued in January 2016 and is effective for most companies that report under IFRS since 1 January 2019. IFRS 16 defines a lease term as the noncancellable period for which the lessee has the right to use an underlying asset including optional periods when an entity is reasonably certain to exercise an option to extend (or not to terminate) a lease. IFRS 16 requires that the 'right of use asset' and the lease liability should initially be measured at the present value of the minimum lease payments. The discount rate used to determine present value should be the rate of interest implicit in the lease.