The new leasing standard IFRS 16 which has now replaced IAS 17 took effect from 1 January 2019. The standard introduces changes primarily for the lessee; there is little change for the lessor.

Under IFRS 16, the lessee no longer applies the distinction between finance leases and operating leases to its accounting and instead applies the principle of right-of-use assets. All lease liabilities must be recognised, regardless of the type of lease.

Under the simplified approach, it is possible to exempt leases that are low value and short term, which according to the interpretation means leases that refer to assets with a value of less than EUR 5,000 and leases that have a remaining term of twelve months or less.

This standard is based on the view that the lessee has a right to use an asset for a specific period of time and also an obligation to pay for this right.