As early as 2016, the International Accounting Standards Board (IASB) issued IFRS 16, replacing the in 2001 adapted IAS 17 Leasing rules (and in this context also IFRIC 4, SIC 15, SIC 27). IFRS 16 is effective for annual reporting periods beginning on or after 1st January 2019, with earlier application permitted (as long as IFRS15 is also applied).
With IFRS 16, it is no longer required to treat financial and operational leases differently from an accounting perspective and therefore this new leasing standard eliminates nearly all “off-balance” sheet accounting for leases. The goal of the new lease accounting rules is to increase transparency and to enable the users of financial statements to assess the impact of their organization’s leases on the financial position and cash flow directly from its balance sheet. To meet that objective, a lessee should recognize assets and liabilities arising from a lease.