The course demonstrates accounting for leases in accordance with International Financial Reporting Standard 16. IFRS 16 -Leases - was issued in January 2016 and, in comparison to its predecessor International Accounting Standard IAS17 makes significant changes to the way in which leasing transactions are reported in the financial statements of lessees (although not in the financial statements of lessors). The purpose of this course is to demonstrate how to account for the leases in the financial statements of Lessee. In this course, you will also learn the significant differences between previous IAS 17 and the new IFRS 16.

IFRS 16 defines a lease as “A contract, or part of a contract, that conveys the right to use an asset for a period of time in exchange for consideration”. In order for such a contract to exist the user of the asset needs to have the right to:

  • Obtain substantially all of the economic benefits from the use of the asset.
  • The right to direct the use of the asset.

Course Key Concepts: Lessor, Lessee, Right of Use, Identified Asset, Lease term, Depreciation, Lease liability, Short-term leases, Low-value leases, Sales & leaseback.

Learning Objectives
  • Identify the differences between IAS 17 and IFRS 16 leases.
  • Explore the accounting for lease in income statement and balance sheet.
  • Explore the simplified approach for short-term and low-value leases.
  • Explore the accounting for sale and leaseback transactions.
Last updated/reviewed: August 25, 2023
Course Complexity: Foundational
No advanced preparation or prerequisites are required for this course.
Education Provider Information
Company: Illumeo, Inc., 75 East Santa Clara St., Suite 1215, San Jose, CA 95113
Contact: For more information regarding this course, including complaint and cancellation policies, please contact our offices at (408) 400- 3993 or send an e-mail to .
Instructor for this course
Course Syllabus
  Introduction to IFRS 16 - Leases4:46
  IFRS 16 Definition and Features11:04
  Accounting for Leases6:20
  Illustration Example 121:26
  Sales and Leaseback Transactions14:28
  Further Examples11:20
  IFRS 16 - Leases1:09:24
  Slides: IFRS 16 - LeasesPDF
  IFRS 16 - Leases Glossary/IndexPDF