This IFRS Newsletter: Leases brings you the latest on the forthcoming leases standard.
A 2019 effective date for the new leases standard has been set by the IASB in its final public meeting on the project.
The Boards have made significant conceptual compromises to finalise the project – above all, on the definition of a lease. The Boards have devoted more discussion and outreach to this topic than to any other area of the standard. However, many stakeholders remain concerned about the robustness of the new definition.
The IASB has decided that the new leases standard – IFRS 16 Leases – will be effective for accounting periods beginning on or after 1 January 2019.
Early adoption will be permitted, provided the company has adopted IFRS 15 Revenue from Contracts with Customers. The IASB expects that its new leases standard will be ready for publication in December 2015.
The FASB will discuss the effective date of its version of the standard in November 2015.
The IASB also addressed five sweep issues identified during the drafting process, namely:
Planning your implementation project for the new leases standard will take time and care. However, it might be worth asking yourself a few simple questions now – just to get a feel for the scale of the challenge ahead.
The checklist on page 8 of our newsletter asks 10 key questions to help you prepare for implementation.