Adviser alert – Insights into IFRS 16 – Lease payments

The Grant Thornton International IFRS team has published Insights into IFRS 16 – Lease payments.

The bulletin Insights into IFRS 16 – Lease Payments provides guidance on how to determine which lease payments to include in the measurement of the lease liability when accounting for a lease under IFRS 16.

The issue

IFRS 16 requires a lessee to measure the lease liability at the present value of the lease payments that are not paid at that date. This liability includes both fixed lease payments (including in-substance fixed payments) and variable lease payments that depend on an index or rate, and it represents the starting point for the measurement of the related right-of-use asset.

Deciding which payments need to be recognized in the measurement of the liability and how changes in those payments are recognized often involves considerable judgment. The bulletin Insights into IFRS 16 – Lease payments aims to help you with this judgment.

Download the bulletin below.