Post-implementation review of IFRS 16: first IASB redeliberations

Observing that the ongoing costs of applying the standard were higher than anticipated for lessees, the IASB tentatively decided to explore the feasibility of reducing costs without a significant negative effect on the usefulness of lease-related financial information. 

The following areas would be explored for the possibility of reducing costs: 

• remeasurements of the lease liability – for example, by: 
  • reducing the frequency of remeasurements of the lease liability; and 
  • simplifying the requirements for the reassessment of the lease liability to reflect changes in variable lease payments that are linked to an index or a rate; and 
• discount rates – for example, by requiring or permitting lessees to use: 
  • a simplified discount rate instead of the incremental borrowing rate; and 
  • an unchanged discount rate for some remeasurements of the lease liability.