On 13 January 2016, the IASB published its new Leases standard, IFRS 16. This signals the end of a major and highly controversial project, which was launched ten years ago in conjunction with the FASB.
Keywords: Mazars, Thailand, IASB, IFRS 16, IFRS 15, FASB, IAS 17, IFRIC 4, SIC 15 and SIC 27
22 April 2016
The IASB says that this standard, which supersedes IAS 17 and the related interpretations (IFRIC 4, SIC 15 and SIC 27), will provide a more faithful representation of leases in IFRS financial statements. Companies have until 1 January 2019 to prepare for this substantial change. Early application is permitted (subject to EU endorsement), but the new standard may not be applied before IFRS 15 – Revenue from Contracts with Customers. In other words, an entity that wishes to apply IFRS 16 from 1 January 2018 can do so, as this will coincide with the mandatory effective date of IFRS 15. However, if the entity wants to apply IFRS 16 from 2017, it will have to opt for early application of IFRS 15 from 1 January 2017 as well.
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