The International Accounting Standards Board (IASB) has published a Request for Information inviting feedback on IFRS 16 Leases as part of its post-implementation review.

IFRS 16, which was issued in January 2016 and came into effect in January 2019, made substantial changes to lessee accounting. The standard introduced a single lease accounting model in which the most significant leases are recognised on-balance sheet, removing the distinction between finance leases and operating leases for lessees.

The IASB is now conducting a post-implementation review to assess whether the effects of the standard on users, preparers, auditors and regulators, including the relative costs and benefits, are as intended when the requirements were developed.

Stakeholders are invited to share their experiences of the standard, including on:

• the usefulness and comparability of information where judgement is used in applying certain requirements that relate to the measurement of the lease liability;
• the usefulness of information about lessee’s lease-related cash flows;
• the ongoing costs for lessees of applying the measurement requirements; and
• relationships between IFRS 16 and certain other IFRS Accounting Standards.

Stakeholders are also invited to provide their overall views on the standard.

The consultation closes on 15 October 2025.

Share your views

ICAEW’s Corporate Reporting Faculty is responding to this consultation. Members are welcome to provide their views on the proposals by emailing crf@icaew.com.

Relevance to FRS 102 preparers

The Periodic Review 2024 amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland introduce a single lease accounting model for lessees based on IFRS 16 (with some simplifications).

As the 1 January 2026 effective date for these new requirements approaches, the IASB’s post-implementation review offers FRS 102 users the opportunity to learn from the experience of IFRS reporters.

For example, the Request for Information notes that some preparers have highlighted the volume of contracts that need to be considered when implementing new lease accounting requirements, and the potential for issues if new IT solutions are adopted. Additionally, initial views shared with the IASB indicate that significant judgement and resources may be needed to determine appropriate discount rates and lease terms when measuring lease liabilities.

Users of FRS 102 may wish to monitor feedback from the post-implementation review to inform their preparations for the new lease accounting requirements.