The new International Financial Reporting Standard 16 Leases
(IFRS 16) has taken effect, and the companies using IFRS shall
adopt IFRS 16 for accounting periods beginning on or after
1 January 2019. Under the prior IFRS accounting
standard for leases (IAS 17), lessees accounted for their lease
liabilities either as operating leases or finance leases. Operating
leases were accounted for as off-balance sheet items, while finance
leases were reflected on the balance sheet. A lease was to be
classified as a finance lease if it transferred substantially all
the risks and rewards incident to ownership. All other leases were
to be classified as operating leases, with classification being
made at the inception of the lease
