IFRS 16 LEASES

INTRODUCTION
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IFRS 16 LEASESe 1.1 . 2
v
Examples Effec ti

How to implement
Airlines have traditionally bought their planes, even if many purchases were
arranged as “finance leases”, with the instalments dressed up as rent payments
so as to make them tax deductible. However, airlines are turning increasingly
to “operating” leases, in which they really are renting the planes, for a few
years at a time, with a leasing company bearing the risk of any slump in their
second-hand values. Over a third of the world's airline fleet is now rented…

C-Leases-60s-20200723
23/06/2024 IFRS, IAS, Practice exmpls, notes, drafts 2
Accounting
Accounting by
by Lessors
Lessors

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 Recognise
Recognise aa Lease
Lease –– ifrs
ifrs 16
16

AA contract
contract isis or
or contains
contains aa lease
lease if
if itit conveys
conveys the
the
right
right to
to control
control the
the use
use of
of an
an identified
identified asset
asset for
for
aa period
period of
of time
time in
in exchange
exchange forfor consideration
consideration
(IFRS16,
(IFRS16, par.9).
par.9).
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Lessee
Lessee accounting
accounting –– Ifrs
Ifrs 16
16

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Under
Under ≤1
≤1 year
year or
or Low
Low value
value

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