Appendix: IFRS 16 Illustrative Examples

Example 1 - Rail cars

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 2 - Concession space

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 3 - Fibre-optic cable

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 4 - Retail unit

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 5 - Truck rental

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 6 - Ship

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 7 - Aircraft

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 8 - Contract for shirts

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 9 - Contract for energy/power

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 10 - Contract for network services

Illustrate how an entity determines whether a contract is, or contains, a lease.

Example 11 - Leases of low-value assets and portfolio application

Illustrate how a lessee might (a) apply paragraphs B3–B8 of IFRS 16 to leases of low-value assets; and (b) determine portfolios of leases to which it would apply the requirements in IFRS 16.

Example 12 - Lessee allocation of consideration to lease and non-lease components of a contract

Illustrates the allocation of consideration in a contract to lease and non-lease components by a lessee.

Example 13 - Measurement by a lessee and accounting for a change in the lease term

Illustrates how a lessee measures right-of-use assets and lease liabilities. It also Illustrates how a lessee accounts for a change in the lease term

Example 14 - Variable lease payments dependent on an index and variable lease payments linked to sales

Illustrates how a lessee accounts for variable lease payments that depend on an index and variable lease payments not included in the measurement of the lease liability.

Example 15 - Modification that is a separate lease

Illustrate the requirements of IFRS 16 regarding lease modifications for a lessee.

Example 16 - Modification that increases the scope of the lease by extending the contractual lease term

Illustrate the requirements of IFRS 16 regarding lease modifications for a lessee.

Example 17 - Modification that decreases the scope of the lease

Illustrate the requirements of IFRS 16 regarding lease modifications for a lessee.

Example 18 - Modification that both increases and decreases the scope of the lease

Illustrate the requirements of IFRS 16 regarding lease modifications for a lessee.

Example 19 - Modification that is a change in consideration only

Illustrate the requirements of IFRS 16 regarding lease modifications for a lessee.

Example 20 - Sublease classified as a finance lease

Illustrate the application of the requirements in IFRS 16 for an intermediate lessor that enters into a head lease and a sublease of the same underlying asset.

Example 21 - Sublease classified as an operating lease

Illustrate the application of the requirements in IFRS 16 for an intermediate lessor that enters into a head lease and a sublease of the same underlying asset.

Example 22 - Variable payment terms

Illustrates how a lessee with different types of lease portfolios might comply with the disclosure requirements described in paragraphs 59 and B49 of IFRS 16 about variable lease payments. This example shows only current period information. IAS 1 Presentation of Financial Statements requires an entity to present comparative information.

Example 23 - Portfolio Approach

Illustrates how a lessee with different types of lease portfolios might comply with the disclosure requirements described in paragraphs 59 and B50