Post-implementation Review of IFRS 16 Leases

The IASB met on 24 March 2026 to discuss how to respond to stakeholder feedback on the Request for Information Post-implementation Review of IFRS 16 Leases. The IASB discussed feedback on:

• the ongoing costs for lessees of applying the measurement requirements in IFRS 16; and
• the usefulness of information resulting from lessees applying judgement.

Ongoing costs for lessees of applying the measurement requirements in IFRS 16 (Agenda Paper 7A)

The IASB tentatively decided to add a research project to its project pipeline. The project will explore whether it would be feasible to mitigate the higher-than-expected ongoing costs for lessees of applying the measurement requirements in IFRS 16 without a significant negative effect on the usefulness of lease-related financial information.

The IASB tentatively decided to explore the feasibility of reducing costs relating to:

1. remeasurements of the lease liability—for example, by:
   1. reducing the frequency of remeasurements of the lease liability; and
   2. simplifying the requirements for the reassessment of the lease liability to reflect changes in variable lease payments that are linked to an index or a rate; and
2. discount rates—for example, by requiring or permitting lessees to use:
   1. a simplified discount rate instead of the incremental borrowing rate; and
   2. an unchanged discount rate for some remeasurements of the lease liability.

All 13 IASB members agreed with these decisions.

The IASB tentatively decided not to take action in response to stakeholder feedback on costs for lessees arising from:

1. the clarity of guidance for remeasurements of the lease liability.
   Ten of 13 IASB members agreed with this decision.
   
   
2. the requirement to use the rate implicit in the lease.
   All 13 IASB members agreed with this decision.
   
   
3. the clarity of guidance for determining discount rates.
   All 13 IASB members agreed with this decision.
   
   
4. recognition exemptions.
   Eleven of 13 IASB members agreed with this decision.
   
   
5. disclosure requirements.
   All 13 IASB members agreed with this decision.
   
   
6. the clarity of guidance for portfolio application of IFRS 16.
   Twelve of 13 IASB members agreed with this decision.
   
   
7. intragroup leases.
   Twelve of 13 IASB members agreed with this decision.
   
   
8. the requirements for determining lease terms.
   Ten of 13 IASB members agreed with this decision.

Usefulness of information resulting from lessees’ application of judgement (Agenda Paper 7B)

The IASB tentatively decided not to add a research project to its project pipeline to explore making targeted improvements to requirements affecting the usefulness of information resulting from lessees applying judgement—for example, by developing specific requirements for lessees to disclose significant judgements made in determining:

1. the lease term; and
2. the discount rate.

Twelve of 13 IASB members agreed with this decision.

The IASB tentatively decided not to take action in response to other matters related to lessees’ judgement that stakeholders raised in response to Question 2 in the Request for Information. Specifically, the IASB tentatively decided:

1. not to provide additional guidance or illustrative examples for determining the lease term.
   All 13 IASB members agreed with this decision.
   
   
2. not to simplify the requirements for determining the lease term.
   Ten of 13 IASB members agreed with this decision.
   
   
3. not to develop specific requirements for lessees to disclose items of information related to the lease term.
   All 13 IASB members agreed with this decision.
   
   
4. not to provide additional guidance or illustrative examples for determining discount rates.
   Twelve of 13 IASB members agreed with this decision.
   
   
5. not to develop specific requirements for lessees to disclose items of information related to the discount rate.
   Twelve of 13 IASB members agreed with this decision.
   
   
6. not to develop specific disclosure requirements for variable lease payments.
   Twelve of 13 IASB members agreed with this decision.
   
   
7. not to provide clarifications, additional application guidance or illustrative examples to help entities determine whether some lease payments are:
   1. in-substance fixed lease payments;
   2. variable lease payments that depend on an index or a rate; or
   3. variable lease payments that do not depend on an index or a rate.
   Twelve of 13 IASB members agreed with this decision.
   
   
8. not to take action in response to other judgement-related matters raised by a few stakeholders in response to Question 2 in the Request for Information and summarised in Appendix A to Agenda Paper 7B.
   All 13 IASB members agreed with this decision.