IFRS 16
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IFRS 16
IFRS 16 (Leases) is the international lease accounting standard issued by the IASB, effective since January 2019. It eliminates the operating/finance lease distinction for lessees, requiring a single lessee model where all leases are recognized on the balance sheet.
Why it matters
IFRS 16 takes a more aggressive approach than ASC 842 by eliminating the operating lease classification for lessees entirely. Under IFRS 16, all leases (except short-term and low-value) follow a single model that resembles ASC 842's finance lease treatment, with separate amortization and interest expense.
This creates differences for companies reporting under both standards. The same lease portfolio produces different income statement patterns under ASC 842 (where operating leases have straight-line expense) and IFRS 16 (where all leases have front-loaded expense). Dual-reporting companies need their platform to handle both simultaneously.
How Arvexi handles this
Arvexi supports IFRS 16 alongside ASC 842, GASB 87, GASB 96, and FRS 102. You can run multiple standards simultaneously on the same lease portfolio with no separate instances and no duplicate data entry. The platform generates standard-specific journal entries, amortization schedules, and disclosures for each reporting framework.