Leases accounting fof the lessee according to IFRS 16
Keywords:
IFRS 16, leases, lessee, right-of-use asset, lease liability
Abstract
IFRS 16 was issued to replace IAS 17, which fundamentally changed the leases accounting, especially for the lessee. Vietnam will apply the IFRS system in 2025. However, Vietnam's accounting regime still applies VAS 06 (similar to IAS 17) to leases that have not applied IFRS 16, and the instructions on the application of IFRS 16 are still not available. This article provides changes in leases accounting, accounting methods, and illustrative examples in the accounting entries and presentation of financial statements for both cases: applying IFRS 16 from the beginning to lease contracts and the retroactive application due to the previous application of IAS 17
