ifrs-leases

name	ifrs-leases
description	Advanced lease identification, measurement, reassessment, modification, sale-and-leaseback, lessor and disclosure review under IFRS 16, with Section 20 routing for IFRS for SMEs.
status	active
metadata	{"portable":true,"category":"02-ifrs-core-standards","compatible_with":["claude-code","codex"]}

Leases (IFRS 16 / Section 20)

Use When

Use for lease populations, embedded leases, ROU assets, lease liabilities, discount rates, options, modifications, reassessments, sale-and-leaseback, lessor accounting and lease disclosures.

Do Not Use When

Do not apply the IFRS 16 lessee model to an IFRS for SMEs report without a documented framework decision. Do not treat a lease as operating under full IFRS merely because payments are described as rent.

Prerequisites

• doctrine/accounting-finance-doctrine.md, doctrine/references/full-ifrs-overlay.md.
• doctrine/references/ifrs-for-smes-default.md (Section 20).
• Lease contracts, payment schedules, asset data, discount-rate evidence and IF-IFRS16-LEASES source-register entry.

IFRS 16 workstream

1. Search contracts, service arrangements, outsourcing, transport and embedded asset arrangements for an identified asset and the right to control use.
2. Determine commencement date, enforceable period, lease term, extension and termination options, purchase options, indexation and variable payments.
3. Measure the liability at present value using the implicit rate when readily determinable; otherwise use an evidence-backed incremental borrowing rate.
4. Measure ROU asset using the liability, prepayments, incentives, initial direct costs and restoration/decommissioning obligations.
5. Run the schedule for interest, payments, depreciation, impairment and current versus non-current classification; reconcile lease register to GL.
6. Reassess triggered changes to term, index/rate, residual value guarantee or purchase option; determine separate lease versus remeasurement treatment.
7. Assess transfer and seller-lessee accounting in sale-and-leaseback separately from legal form.
8. Link additions, carrying amounts, maturity, expense, cash flows and judgement disclosures to the reporting pack.

IFRS for SMEs Section 20 route

Classify leases as finance or operating based on transfer of substantially all risks and rewards. Finance leases recognise an asset and liability at the lower of fair value and present value of minimum lease payments; operating-lease expense is generally systematic over the term. The lessor route mirrors the framework and requires its own disclosure review.

Inputs

Artifact	Produced by	Required?	Validation
Framework and lease-scope memo	Reporting owner	Required	Full IFRS/SME basis and scope assumptions explicit.
Contract population	Procurement/legal/operations	Required	Completeness search and identified assets recorded.
Payment and option schedule	Treasury/lease owner	Required	Fixed, index-linked, variable, incentive and option data reconciled.
Discount-rate evidence	Treasury/valuation reviewer	Required for IFRS 16	Implicit/IBR selection and source evidence present.
Reviewer route	Doctrine owner	Required	IFRS reviewer and model reviewer assigned.

Outputs

Artifact	Consumed by	Acceptance evidence
Lease-identification memo	Controller and auditor	Contract, asset, control and exemption conclusion.
ROU/liability schedule	GL, close and reporting	Opening plus movement equals closing and agrees to source schedule.
Modification/reassessment workpaper	Controller	Trigger, recalculation, posting and disclosure impact traceable.
Lease disclosure pack	Financial-statement reviewer	Class, maturity, additions, carrying amounts, expense and judgements reconcile.

Decision Rules

Condition	Decision
Underlying asset low-value or lease term within the permitted short-term exemption	Document election and consistent policy; do not silently omit from population.
Full IFRS arrangement lacks exemption evidence	Recognise and measure through IFRS 16 route or block pending evidence.
Option assessment changes	Reassess lease term and remeasure using the applicable requirements.
Contract modification adds right of use at commensurate price	Assess separate lease before remeasurement.
Sale-and-leaseback transfer is not a sale	Do not derecognise the asset as a sale.
Discount rate is unsupported	Block final schedule or obtain reviewer-approved rate evidence.

Acceptance Evidence

• references/exemption-test.md, references/full-ifrs-16-lessee-model.md, and references/advanced-ifrs16-lessee-workpaper.md are completed as applicable.
• examples/lease-modification-and-reassessment.md covers a modification and a blocked missing-rate path.
• Lease register, schedule, GL and disclosures reconcile.
• Reviewer and current-source states are explicit.

Evidence Produced

Category	Artifact	Format	Example
Correctness	Lease identification and ROU schedule	Markdown using references/advanced-ifrs16-lessee-workpaper.md	docs/ifrs-workpapers/ifrs16-<id>.md
Release evidence	Lease population completeness and exception log	Markdown table	docs/ifrs-workpapers/lease-exceptions-<period>.md

Anti-Patterns

• Treating all rent invoices as operating leases under full IFRS.
• Using a generic discount rate with no currency, term, collateral or credit evidence.
• Changing exemption elections without policy and disclosure documentation.
• Ignoring embedded leases in service contracts.
• Editing a posted lease journal instead of a linked correction/reversal.
• Publishing a ROU schedule that does not tie to the lease register and GL.

Files

• references/exemption-test.md
• references/full-ifrs-16-lessee-model.md
• references/advanced-ifrs16-lessee-workpaper.md
• examples/lease-modification-and-reassessment.md

Review Metadata

Field	Value
Owner role	IFRS leases reviewer
Reviewer roles	IFRS technical reviewer; treasury/valuation reviewer; controller
Last reviewed	2026-08-27
Next review due	2026-12-31
Release state	Active advanced doctrine route; client release requires current source and human review
Caveat	Lease completeness, term and discount-rate judgements are evidence-sensitive.

Last reviewed: 2026-08-27. Next review due: 2026-12-31.