IASB has released IFRS 16 'Leases', completing its long-running project on lease accounting.

IFRS 16 will require lessees to account for leases 'on-balance sheet' by recognising a 'right-of-use' asset and a lease liability. For many businesses, however, exemptions for short-term leases and leases of low value assets will greatly reduce the impact.

The Standard is effective for periods on or after 1 January 2019, with early application permitted in certain circumstances.

The attached Alert provides a high-level overview of the Standard.