Leash Blog
Insights & Expertise
Expert insights, guides, and best practices for IFRS 16 lease accounting and compliance.
Featured Article
Subleases Explained - Accounting Under IFRS 16
A sublease occurs when a lessee (the intermediate lessor) grants a lease of the right-of-use (ROU) asset obtained under an original lease to another party (the sublessee). Importantly, the intermediate lessor continues to account for the original lease with the head lessor and also accounts for the sublease with the sublessee.
Recent Articles
Leasehold Improvements - IFRS Accounting Treatment
Under IFRS, leasehold improvements are treated as property, plant, and equipment (PPE) and fall under the scope of IAS 16. This article explains how a lessee should account for leasehold improvements including recognition, measurement, and depreciation.
Variable Lease Payments under IFRS 16: Definition, Examples, and Accounting Treatment
Variable lease payments are a key area of complexity under IFRS 16. This article explores their types, examples, and the appropriate accounting treatment for both lessees and lessors.
Consolidation of Intercompany Leases (Including Journal Entries) - IFRS 16 Leases
Intercompany leases are common in group structures and require special attention under IFRS 16. This article explains how to treat these leases in both separate and consolidated financial statements.
Lease Modifications Under IFRS 16 Leases
This article explains how lease modifications impact lessees and lessors under IFRS 16, including remeasurements, discount rates, journal entries and ohter accounting treatments.
Tax Treatment of Leases Under IFRS 16 - South Africa
This article explains the different tax consequences for leases, highlighting the distinctions between ICAs and normal rental agreements under South African VAT and income tax law.
Lease Incentives Examples & Journal Entries - IFRS 16
Lease incentives, often provided by lessors to lessees, impact both the accounting treatment of leases and financial statements under IFRS 16. This article explores the definition, treatment, and implications of lease incentives for both lessees and lessors.
Finance Leases vs. Operating Leases - IFRS 16 Lessor Accounting
This article outlines the fundamental differences between finance leases and operating leases under IFRS 16 Leases. A finance lease transfers substantially all risks and rewards of ownership, while an operating lease does not. Understanding this classification is essential for proper lease accounting.
Interest Rate Implicit In The Lease Explained - IFRS 16 & ASC 842
The interest rate implicit in the lease is the rate that reflects the lessor’s return on a lease. One can think of it as the lessor's internal rate of return on the lease. This rate is used to discount lease payments to a present value, in order to recognise a lease liability