The International Accounting Standards Board has concluded its post-implementation review of IFRS 16 Leases, finding that the standard is overall working as intended and has improved the transparency and comparability of lease information for investors and other users of financial statements. Alongside that conclusion, the board agreed to pursue targeted follow-up work to reduce some ongoing application costs and to propose amendments to IFRS 18 Presentation and Disclosure in Financial Statements on the presentation of certain tax charges. The follow-up project on IFRS 16 will examine how to reduce costs without significantly affecting the usefulness of lease-related information. It will focus on remeasurements of lease liabilities and discount rates, and will clarify how IFRS 16 and IFRS 9 Financial Instruments apply to some rent concessions. Separately, the proposed IFRS 18 amendments would require a tax charge that is imposed as a direct substitute for an income tax to be classified in the income taxes category of the statement of profit or loss, where legislation requires or allows a company to pay that specified charge instead of an income tax. The board expects to publish the project summary and feedback statement for the IFRS 16 review in the fourth quarter of 2026. It also expects to publish an exposure draft on the IFRS 18 tax presentation amendments in the fourth quarter of 2026, while the start date for the IFRS 16 follow-up project will be decided at a future meeting.
International Financial Reporting Standards Foundation2026-07-22
International Accounting Standards Board concludes IFRS 16 review, plans targeted lease relief work and IFRS 18 tax presentation amendments
The International Accounting Standards Board concluded that IFRS 16 is overall working as intended, but will launch targeted work to reduce application costs linked to lease liability remeasurements, discount rates and some rent concessions. It also agreed to propose amendments to IFRS 18 so tax charges that directly substitute for income tax are presented within the income taxes category of profit or loss. Related publications are expected in the fourth quarter of 2026.