IFRS 16 Post-Implementation Review: What the IASB Decided (July 2026)

Seven years after IFRS 16 Leases became effective, the International Accounting Standards Board (IASB) has completed its post-implementation review of the standard. At its meeting on July 21, 2026, the Board concluded that IFRS 16 is, overall, working as intended. The decision was unanimous.

Here is what the review covered, what the IASB decided, and what it means for companies applying the standard.

Background: What a Post-Implementation Review Is

The IASB reviews every major new standard after it has been applied for several years. The goal is to assess whether the standard achieves its objectives, whether there are unexpected costs or application problems, and whether follow-up action is needed.

For IFRS 16, the IASB published a Request for Information in June 2025. The comment period closed on October 15, 2025. The Board then discussed the feedback in several meetings during 2026.

The Key Conclusion

The IASB concluded that IFRS 16 is working as intended overall. The central objective – bringing lessees' lease obligations onto the balance sheet and improving transparency for investors – has been achieved.

That does not mean the standard is free of challenges. The review confirmed several areas where application is costly or complex, particularly for lessees.

Planned Follow-Up Work

1. Research project on lessee measurement

The IASB added a research project to its research pipeline to explore how to reduce the cost for lessees of applying the measurement requirements. Topics include:

• remeasurement of the lease liability, and

• discount rates, including the possibility of a simplified discount rate.

2. Narrow-scope project on rent concessions

In combination with the research project, the IASB will address how IFRS 16 and IFRS 9 apply to rent concessions where the lessor forgives lease payments. This topic is relevant for both lessees and lessors.

3. Cash flow disclosures

Within its separate project on the statement of cash flows, the IASB will explore requiring lessees to disclose the components of total cash outflows for leases and the line items in which they are presented.

4. Sale and leaseback in single-asset entities

This topic was removed from the maintenance pipeline. Its priority will be considered together with other matters related to corporate wrappers in the next agenda consultation.

For other matters raised during the review, the IASB decided not to take action.

What This Means for Lessors

The decisions focus mainly on lessee accounting. No fundamental changes to the lessor model are planned. For lessors, this means stability: the existing classification into finance and operating leases, and the related accounting, remain unchanged.

The narrow-scope project on rent concessions may become relevant for lessors that grant payment relief to lessees, as the interaction between IFRS 16 and IFRS 9 for forgiven payments is addressed.

What This Means for Companies and Systems

• No immediate changes. The review does not change IFRS 16 today. Any amendments resulting from the follow-up projects would go through the IASB's normal due process, including exposure drafts and comment periods.

• Watch the lessee measurement project. A simplified discount rate or changes to remeasurement would affect lessee calculations and the systems that perform them.

• Disclosures may expand. Additional cash flow disclosures for lessees would require data that is not always readily available in current systems.

Next Steps

The IASB's next milestone is the publication of a project summary and feedback statement, which sets out the findings of the review and the Board's response. It is planned for the fourth quarter of 2026, subject to approval by the Due Process Oversight Committee.

Related Articles

• IFRS 16 vs. ASC 842: Key Differences for Lessors

• Operating vs. Finance Lease: How Classification Drives Accounting

• Leases in Bundled Contracts: Separating Lease and Non-Lease Components

The Bottom Line

IFRS 16 has passed its post-implementation review. For lessors, the accounting model remains stable. For lessees, the IASB will look at ways to reduce measurement costs. Companies should monitor the follow-up projects, but no immediate action is required.

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