As the financial statements for the year ended 2019 are currently being prepared and audited, practitioners should already be aware of the new accounting standard IFRS 16 that is effective from 1 January 2019. Under the new standard, the most significant impact will be on the treatment of leases by the lessee.

In this publication, we summarise the important changes introduced in IFRS 16 from the perspective of the lessee including the impact on the financial statements.