Document ID: chunk:federal_register_of_legislation:F2024C00049:body:0:p2
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B  Application guidance
C  Effective date and transition
D  Amendments to other Standards
E  Australian simplified disclosures for Tier 2 entities
COMPILATION DETAILS
Deleted IFRS 16 text

basis for conclusions on AASB 2018-8
basis for conclusions on AASB 2019-8
basis for conclusions on AASB 2022-3

Available on the AASB website
Illustrative examples for IFRS 16
Basis for Conclusions on IFRS 16

Australian Accounting Standard AASB 16 Leases (as amended) is set out in paragraphs 1 – 106 and Appendices A – E.  All the paragraphs have equal authority.  Paragraphs in bold type state the main principles.  Terms defined in Appendix A are in italics the first time they appear in the Standard.  AASB 16 is to be read in the context of other Australian Accounting Standards, including AASB 1048 Interpretation of Standards, which identifies the Australian Accounting Interpretations, and AASB 1057 Application of Australian Accounting Standards.  In the absence of explicit guidance, AASB 108 Accounting Policies, Changes in Accounting Estimates and Errors provides a basis for selecting and applying accounting policies.

Comparison with IFRS 16
AASB 16 Leases as amended incorporates IFRS 16 Leases as issued and amended by the International Accounting Standards Board (IASB).  Australian‑specific paragraphs (which are not included in IFRS 16) are identified with the prefix "Aus".  Paragraphs that apply only to not-for-profit entities begin by identifying their limited applicability.

Tier 1
For-profit entities complying with AASB 16 also comply with IFRS 16.
Not-for-profit entities' compliance with IFRS 16 will depend on whether any "Aus" paragraphs that specifically apply to not-for-profit entities provide additional guidance or contain applicable requirements that are inconsistent with IFRS 16.

Tier 2
Entities preparing general purpose financial statements under Australian Accounting Standards – Simplified Disclosures (Tier 2) will not be in compliance with IFRS Standards.
AASB 1053 Application of Tiers of Australian Accounting Standards explains the two tiers of reporting requirements.

Accounting Standard AASB 16

The Australian Accounting Standards Board made Accounting Standard AASB 16 Leases under section 334 of the Corporations Act 2001 on 23 February 2016.

This compiled version of AASB 16 applies to annual periods beginning on or after 1 January 2024.  It incorporates relevant amendments contained in other AASB Standards made by the AASB up to and including 10 November 2022 (see Compilation Details).

Accounting Standard AASB 16

Leases

Objective
1 This Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions. This information gives a basis for users of financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity.
2 An entity