From Carmen Ridley – CaseWare Financial Reporting content expert, AASB member & Principal – Australian Financial Reporting Solutions.
AASB 16 Leases is still effective for annual reporting periods beginning on or after 1 January 2019
We have recently had a number of queries from clients who got very excited because they thought that the effective date of AASB 16 has changed.
We would like to confirm that AASB 16 is still effective for annual reporting periods beginning on or after 1 January 2019 – including 31 December or 30 June 2020 year ends.
The confusion has arisen because there has been an amendment to AASB 16 in relation to a consequential amendment to AASB 1059. This amendment is effective from 1 January 2020. If you look at the table of standards on the AASB website, it refers to the 2020 date, as this table always shows the most recent version of the standard.
The compilation table in AASB 16 confirms the principal standard is effective from 1 January 2019, refer below:
If you haven’t started planning for the adoption of AASB 16, then we would encourage you to do this as soon as possible as many entities are finding this standard more challenging than they were initially anticipating.