Insights into IFRS 16 – Lease incentives

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

The document Insights into IFRS 16 – Lease incentives provides guidance on the accounting for lease incentives under IFRS 16 Leases from a lessee perspective.

Granting lease incentives is a common way to encourage a new lessee to sign up to a new lease contract and fill vacant premises. Lease incentives may take various forms depending on the negotiation between the lessee and the lessor.

When accounting for lease incentives in accordance with IFRS 16 Leases from a lessee perspective, questions may arise in how to identify a lease incentive and when the accounting treatment changes depending on how the lease incentive is granted.

The document Insights into IFRS 16 – Lease incentives aims to resolve these lessee accounting questions.