IFRS 16Chapter 17Lesson 1
Transition for lessees (key points)
Step 1 of 7Learning objectives
Go deeper+2 deeper insights · +1 calculation · +1 journal entry · +1 point of attention
The key points needed to read the financial statements of the year in which a lessee moved to IFRS 16: the date of initial application, the two methods (full retrospective, or cumulative effect without restating comparatives), the measurement of former operating leases and the main practical expedients.
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Learning objectives
- Locate the date of initial application and distinguish the lessee's two transition methods.
- Measure, under the cumulative-effect method, the lease liability and the right-of-use asset of a former operating lease.
- Recognise the main practical expedients and their consequences for comparability.