The Advantages that IFRS 16 Brings to the Economic Environment

Tudor Liviu-Alexandru ()
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Tudor Liviu-Alexandru: Bucharest Academy of Economic Studies

Ovidius University Annals, Economic Sciences Series, 2018, vol. XVIII, issue 1, 510-513

Abstract: The International Accounting Standards Board issued in January 2016 IFRS 16 Standard"Lease Contracts" that will replace IAS 17, the current Standard on "Lease Contracts". Theapplication of IFRS 16 is mandatory beginning with January 2019. This standard evaluates all leasing commitments (financial or operational) as a possibility ofthe right to use all leased assets with the cost of the subsequent payments (leasing debt). Exceptionof the rule is made for low value goods or those goods that are leased for a period equal to or lessthan 12 months. The right of use and lease liability will be recorded in the balance sheet of thelessee applying IFRS, regardless the category of the lease financial or operational.

Keywords: IFRS 16†Leasesâ€; Costs; Implementation effects (search for similar items in EconPapers)
JEL-codes: M41 (search for similar items in EconPapers)
Date: 2018
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