IFRS 16: Leases
Single lessee accounting model: recognition of right-of-use (ROU) assets and lease liabilities for nearly all leases.
Why IFRS 16 matters
Many issuers' lease accounting was rebuilt in the IFRS 16 transition and now drifts. Discount-rate and lease-modification accounting are recurring findings.
Framework: International Financial Reporting Standards (IFRS)
IFRS are issued by the IFRS Foundation and used by Canadian publicly accountable enterprises as required by Part I of the CPA Canada Handbook. Auditors test whether the financial statements comply with IFRS as issued by the IASB.
Primary source: IFRS Foundation
Frequently asked
What is IFRS 16?
Single lessee accounting model: recognition of right-of-use (ROU) assets and lease liabilities for nearly all leases.
Why does IFRS 16 matter for an audit?
Many issuers' lease accounting was rebuilt in the IFRS 16 transition and now drifts. Discount-rate and lease-modification accounting are recurring findings.
Which framework does IFRS 16 belong to?
IFRS 16 falls under International Financial Reporting Standards (IFRS). IFRS are issued by the IFRS Foundation and used by Canadian publicly accountable enterprises as required by Part I of the CPA Canada Handbook. Auditors test whether the financial statements comply with IFRS as issued by the IASB.
Related standards — International Financial Reporting Standards (IFRS)
See how Auditus checks IFRS 16
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