Single Lessee Model
Related terms
Category
IFRS 16
The single lessee model is the IFRS 16 approach that eliminates the distinction between operating and finance leases for lessees. All leases are accounted for similarly. recognizing a right-of-use asset and lease liability on the balance sheet with front-loaded expense recognition.
Why it matters
Unlike ASC 842 which preserves operating and finance lease classifications, IFRS 16 treats all lessee leases the same way. This simplifies classification but produces higher early-period expenses for what would be operating leases under US GAAP. Companies reporting under both standards must manage this difference.
How Arvexi handles this
Arvexi applies the correct single-model treatment for IFRS 16 while simultaneously calculating ASC 842's dual-model results for the same leases. Dual-reporting companies see both standards side by side without duplicate data entry.