IFRS 16 is an international accounting standard issued by the International Accounting Standards Board (IASB) that governs the accounting treatment of leases. Effective since January 2019, IFRS 16 requires lessees to recognise most leases on the balance sheet as a right-of-use asset and a lease liability, eliminating the previous distinction between operating and finance leases for lessees. The goal is to enhance transparency and comparability in financial reporting.

The International Accounting Standards Board (IASB) is an independent body responsible for developing and issuing International Financial Reporting Standards (IFRS). It operates under the oversight of the IFRS Foundation. The IASB sets standards used in more than 140 countries and aims to bring transparency, accountability, and efficiency to global financial markets through high-quality financial reporting.

3. What is a post-implementation review (PIR)?

A post-implementation review is a standard process conducted by the IASB to assess whether a new accounting standard is working as intended. It involves gathering feedback from stakeholders—including preparers, users, auditors, and regulators—on whether the standard’s requirements are understandable, cost-effective, and provide useful information. For IFRS 16, this includes assessing practical challenges, benefits, and areas needing clarification.

4. Why is the IASB reviewing IFRS 16 now?

The IASB typically conducts a post-implementation review several years after a major standard takes effect. Since IFRS 16 came into force in 2019, the Board is now seeking input to evaluate its real-world impact, including whether it has improved financial reporting and whether the benefits outweigh the costs of implementation and compliance.

5. How can stakeholders provide feedback, and by when?

Stakeholders can provide feedback by responding to the Request for Information (RFI) published by the IASB. Responses can be submitted through the IFRS Foundation’s official website. The consultation is open until 15 October 2025, and the IASB encourages input from a wide range of users, including companies, investors, auditors, standard-setters, and academics.