In this article we identify the requirements and provide a series of examples illustrating one possible way the note disclosures might be presented. When it comes to the notes, the Standard tends to focus on the details of the information to be provided, leaving it to preparers to decide on the most meaningful way to present it. As a result, your specific disclosures may not look exactly the same as the ones we’ve chosen.
For a lessee, a lease that is accounted for under IFRS 16 results in the recognition of:
The right-of-use asset and lease liability must be presented or disclosed separately from other, non-lease assets and liabilities (except for investment property right-of-use assets which are presented as investment property). Where a lessee chooses not to present its right-of-use assets separately on the face of the balance sheet, they must be presented in the same line item that would be used if the underlying asset were owned. In many, but not all, cases this will be property, plant and equipment.
IFRS 16 requires lessees and lessors to provide information about leasing activities within their financial statements.
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