IFRS 16 Leases will be effective for annual periods beginning on or after 1 January 2019, subject to EU endorsement, which is expected in 2017. This new International Financial Reporting Standard (IFRS) could have a significant impact on the financial statements of many companies.

Under the current IAS 17 Leases, both lessees and lessors have to make a distinction between a finance lease (on balance sheet) and an operating lease (off balance sheet). There is little change in respect to lessor accounting under IFRS 16.