Commission Regulation (EU) 2017/1986Show full title

Commission Regulation (EU) 2017/1986 of 31 October 2017 amending Regulation (EC) No 1126/2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council as regards International Financial Reporting Standard 16 (Text with EEA relevance) (revoked)

  1. Introductory Text

  2. Article 1.The Annex to Regulation (EC) No 1126/2008 is amended as...

  3. Article 2.Each company shall apply the amendments referred to in Article...

  4. Article 3.This Regulation shall enter into force on the twentieth day...

  5. Signature

    1. ANNEX

      1. International Financial Reporting Standard 16 Leases

        1. International Financial Reporting Standard 16 Leases

          1. OBJECTIVE

            1. 1. This Standard sets out the principles for the recognition, measurement, ...

            2. 2. An entity shall consider the terms and conditions of contracts ...

          2. SCOPE

            1. 3. An entity shall apply this Standard to all leases, including...

            2. 4. A lessee may, but is not required to, apply this ...

          3. RECOGNITION EXEMPTIONS (PARAGRAPHS B3–B8)

            1. 5. A lessee may elect not to apply the requirements in...

            2. 6. If a lessee elects not to apply the requirements in ...

            3. 7. If a lessee accounts for short-term leases applying paragraph 6,...

            4. 8. The election for short-term leases shall be made by class ...

          4. IDENTIFYING A LEASE (PARAGRAPHS B9–B33)

            1. 9. At inception of a contract, an entity shall assess whether ...

            2. 10. A period of time may be described in terms of ...

            3. 11. An entity shall reassess whether a contract is, or contains, ...

            4. Separating components of a contract

              1. 12. For a contract that is, or contains, a lease, an ...

              2. Lessee

                1. 13. For a contract that contains a lease component and one ...

                2. 14. The relative stand-alone price of lease and non-lease components shall ...

                3. 15. As a practical expedient, a lessee may elect, by class ...

                4. 16. Unless the practical expedient in paragraph 15 is applied, a ...

              3. Lessor

                1. 17. For a contract that contains a lease component and one ...

          5. LEASE TERM (PARAGRAPHS B34–B41)

            1. 18. An entity shall determine the lease term as the non-cancellable...

            2. 19. In assessing whether a lessee is reasonably certain to exercise ...

            3. 20. A lessee shall reassess whether it is reasonably certain to...

            4. 21. An entity shall revise the lease term if there is...

          6. LESSEE

            1. Recognition

              1. 22. At the commencement date , a lessee shall recognise a ...

            2. Measurement

              1. Initial measurement

                1. Initial measurement of the right-of-use asset

                  1. 23. At the commencement date, a lessee shall measure the right-of-use ...

                  2. 24. The cost of the right-of-use asset shall comprise:

                  3. 25. A lessee shall recognise the costs described in paragraph 24(d) ...

                2. Initial measurement of the lease liability

                  1. 26. At the commencement date, a lessee shall measure the lease ...

                  2. 27. At the commencement date, the lease payments included in the...

                  3. 28. Variable lease payments that depend on an index or a ...

              2. Subsequent measurement

                1. Subsequent measurement of the right-of-use asset

                  1. 29. After the commencement date, a lessee shall measure the right-of-use ...

                  2. Cost model

                    1. 30. To apply a cost model, a lessee shall measure the...

                    2. 31. A lessee shall apply the depreciation requirements in IAS 16 ...

                    3. 32. If the lease transfers ownership of the underlying asset to ...

                    4. 33. A lessee shall apply IAS 36 Impairment of Assets to ...

                  3. Other measurement models

                    1. 34. If a lessee applies the fair value model in IAS ...

                    2. 35. If right-of-use assets relate to a class of property, plant ...

                2. Subsequent measurement of the lease liability

                  1. 36. After the commencement date, a lessee shall measure the lease...

                  2. 37. Interest on the lease liability in each period during the ...

                  3. 38. After the commencement date, a lessee shall recognise in profit...

                  4. Reassessment of the lease liability

                    1. 39. After the commencement date, a lessee shall apply paragraphs 40–43 ...

                    2. 40. A lessee shall remeasure the lease liability by discounting the...

                    3. 41. In applying paragraph 40, a lessee shall determine the revised ...

                    4. 42. A lessee shall remeasure the lease liability by discounting the...

                    5. 43. In applying paragraph 42, a lessee shall use an unchanged ...

                3. Lease modifications

                  1. 44. A lessee shall account for a lease modification as a...

                  2. 45. For a lease modification that is not accounted for as...

                  3. 46. For a lease modification that is not accounted for as...

            3. Presentation

              1. 47. A lessee shall either present in the statement of financial...

              2. 48. The requirement in paragraph 47(a) does not apply to right-of-use ...

              3. 49. In the statement of profit or loss and other comprehensive ...

              4. 50. In the statement of cash flows, a lessee shall classify:...

            4. Disclosure

              1. 51. The objective of the disclosures is for lessees to disclose ...

              2. 52. A lessee shall disclose information about its leases for which ...

              3. 53. A lessee shall disclose the following amounts for the reporting...

              4. 54. A lessee shall provide the disclosures specified in paragraph 53 ...

              5. 55. A lessee shall disclose the amount of its lease commitments ...

              6. 56. If right-of-use assets meet the definition of investment property, a ...

              7. 57. If a lessee measures right-of-use assets at revalued amounts applying ...

              8. 58. A lessee shall disclose a maturity analysis of lease liabilities ...

              9. 59. In addition to the disclosures required in paragraphs 53–58, a...

              10. 60. A lessee that accounts for short-term leases or leases of ...

          7. LESSOR

            1. Classification of leases (paragraphs B53–B58)

              1. 61. A lessor shall classify each of its leases as either ...

              2. 62. A lease is classified as a finance lease if it ...

              3. 63. Whether a lease is a finance lease or an operating...

              4. 64. Indicators of situations that individually or in combination could also...

              5. 65. The examples and indicators in paragraphs 63–64 are not always ...

              6. 66. Lease classification is made at the inception date and is ...

            2. Finance leases

              1. Recognition and measurement

                1. 67. At the commencement date, a lessor shall recognise assets held ...

                2. Initial measurement

                  1. 68. The lessor shall use the interest rate implicit in the ...

                  2. 69. Initial direct costs, other than those incurred by manufacturer or ...

                  3. Initial measurement of the lease payments included in the net...

                    1. 70. At the commencement date, the lease payments included in the...

                  4. Manufacturer or dealer lessors

                    1. 71. At the commencement date, a manufacturer or dealer lessor shall...

                    2. 72. Manufacturers or dealers often offer to customers the choice of ...

                    3. 73. Manufacturer or dealer lessors sometimes quote artificially low rates of ...

                    4. 74. A manufacturer or dealer lessor shall recognise as an expense ...

                3. Subsequent measurement

                  1. 75. A lessor shall recognise finance income over the lease term, ...

                  2. 76. A lessor aims to allocate finance income over the lease ...

                  3. 77. A lessor shall apply the derecognition and impairment requirements in ...

                  4. 78. A lessor that classifies an asset under a finance lease ...

                  5. Lease modifications

                    1. 79. A lessor shall account for a modification to a finance...

                    2. 80. For a modification to a finance lease that is not...

            3. Operating leases

              1. Recognition and measurement

                1. 81. A lessor shall recognise lease payments from operating leases as ...

                2. 82. A lessor shall recognise costs, including depreciation, incurred in earning ...

                3. 83. A lessor shall add initial direct costs incurred in obtaining ...

                4. 84. The depreciation policy for depreciable underlying assets subject to operating ...

                5. 85. A lessor shall apply IAS 36 to determine whether an ...

                6. 86. A manufacturer or dealer lessor does not recognise any selling ...

                7. Lease modifications

                  1. 87. A lessor shall account for a modification to an operating ...

              2. Presentation

                1. 88. A lessor shall present underlying assets subject to operating leases ...

            4. Disclosure

              1. 89. The objective of the disclosures is for lessors to disclose ...

              2. 90. A lessor shall disclose the following amounts for the reporting...

              3. 91. A lessor shall provide the disclosures specified in paragraph 90 ...

              4. 92. A lessor shall disclose additional qualitative and quantitative information about...

              5. Finance leases

                1. 93. A lessor shall provide a qualitative and quantitative explanation of ...

                2. 94. A lessor shall disclose a maturity analysis of the lease ...

              6. Operating leases

                1. 95. For items of property, plant and equipment subject to an ...

                2. 96. A lessor shall apply the disclosure requirements in IAS 36, ...

                3. 97. A lessor shall disclose a maturity analysis of lease payments, ...

          8. SALE AND LEASEBACK TRANSACTIONS

            1. 98. If an entity (the seller-lessee) transfers an asset to another ...

            2. Assessing whether the transfer of the asset is a sale...

              1. 99. An entity shall apply the requirements for determining when a ...

              2. Transfer of the asset is a sale

                1. 100. If the transfer of an asset by the seller-lessee satisfies...

                2. 101. If the fair value of the consideration for the sale...

                3. 102. The entity shall measure any potential adjustment required by paragraph...

              3. Transfer of the asset is not a sale

                1. 103. If the transfer of an asset by the seller-lessee does...

        2. Appendix A Defined terms This appendix is an integral part of the...

          1. Defined terms

          2. Terms defined in other Standards and used in this Standard...

        3. Appendix B Application guidance

        4. Appendix C Effective date and transition

        5. Appendix D Amendments to other Standards