IASB: Post-Implementation Review of IFRS 16 (Leases)

Posted 01 August 2025 Written by Acts Online
Category Financial and Accounting

Brought to you by SA Accounting Academy: The International Accounting Standards Board (IASB) has initiated a formal review to determine whether the requirements in IFRS 16 (Leases) are working as intended and providing useful information to users of financial statements.

In accordance with the due process requirements of the IFRS Foundation, the IASB has published a Request for Information (RFI) to gather feedback on the implementation of IFRS 16. The standard, which was issued in January 2016 and became effective for annual reporting periods beginning on or after 1 January 2019, introduced a single lessee accounting model requiring lessees to recognise assets and liabilities for all leases.

The Post-Implementation Review (PIR) process, which commenced in June 2024, seeks to evaluate the real-world effects of the standard on various stakeholders, including:

  • Investors and financial analysts;
  • Companies and preparers of financial statements;
  • Auditors and independent reviewers; and
  • Regulators and national standard-setters.

The RFI focuses on whether the principles for the recognition, measurement, presentation, and disclosure of leases are being applied consistently and whether the costs of applying the standard are in line with the IASB’s original expectations. This review is a standard procedural step taken a few years after any major new accounting standard has been implemented globally.

Click here to download the IASB Request for Information: Post-implementation Review of IFRS 16 Leases.

What this means for you, your business, or your clients

  • For yourself: Review the RFI to identify specific areas of IFRS 16 that are under scrutiny, which may influence your interpretation of complex lease contracts in future reporting cycles.
  • For your business: Assess the internal costs and technical challenges your firm has encountered with IFRS 16 compliance to provide feedback or prepare for potential future refinements to the standard.
  • For your clients: Advise clients with extensive lease portfolios that the IASB is evaluating the standard’s effectiveness, which may lead to future amendments in how lease liabilities and right-of-use assets are disclosed.

Originally published at https://accountingacademy.co.za/news/read/iasb-post-implementation-review-of-ifrs-16-leases

The views expressed herein are those of the author and do not necessarily reflect those of Acts Online. Acts Online accepts no responsibility for the accuracy, completeness or fairness of the article, nor does the information contained herein constitute advice, legal or otherwise.