Post-implementation Review of IFRS 16 Leases

The IASB met on 21 July 2026:

• to decide whether IFRS 16 Leases is overall working as intended;
• to finalise the decisions made in the Post-implementation Review of IFRS 16 Leases; and
• to decide whether sufficient work has been completed to conclude the Post-implementation Review and to prepare a project summary and feedback statement.

Overall assessment of IFRS 16 and finalising decisions in this PIR (Agenda Paper 7A)

The IASB concluded that the requirements in IFRS 16 are overall working as intended.

All 12 IASB members agreed with this decision.

The IASB decided to confirm its previous tentative decisions in this Post-implementation Review:

1. to add a research project to its project pipeline. The project will explore how 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 project will explore reducing costs relating to:
   1. remeasurements of the lease liability (for example, by reducing the frequency of remeasurements of the lease liability and 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).
   2. discount rates (for example, by requiring or permitting lessees to use a simplified discount rate instead of an incremental borrowing rate and an unchanged discount rate for some remeasurements of the lease liability).
2. to add a narrow-scope project to its project pipeline to clarify how a lessee applies the requirements in IFRS 16 and IFRS 9 Financial Instruments to account for a rent concession (in which the only change to the lease contract is the lessor’s forgiveness of lease payments due from the lessee under that contract). The IASB will undertake this project together with the research project described in (a) as a single project to improve IFRS 16.
3. to consider the priority of a project to explore the effects of applying the requirements in IFRS 16 and IFRS 10 Consolidated Financial Statements to account for the sale and leaseback of an asset in a single-asset entity (currently a matter in the maintenance-project pipeline) together with other corporate-wrapper matters in its next agenda consultation.
4. to remove the matter Sale and Leaseback of an Asset in a Single-asset Entity from the maintenance-project pipeline.
5. not to take action on other matters identified by stakeholders in response to Questions 2–6 in the Request for Information.

All 12 IASB members agreed with this decision.

The IASB decided to confirm its previous tentative decision to explore (in its project on Statement of Cash Flows and Related Matters) requiring lessees to disclose the components of the total cash outflow for leases together with the line item in the statement of cash flows in which each component is presented.

Eleven of 12 IASB members agreed with this decision.

Summary of the IASB’s work undertaken and next steps (Agenda Paper 7B)

The IASB decided that sufficient work has been completed to conclude the Post-implementation Review and to prepare a project summary and feedback statement.

All 12 IASB members agreed with this decision.