Help Improve Lease Accounting Standards: IFRS 16 Review

The International Accounting Standards Board (IASB) has opened a Post-implementation Review of IFRS 16 Leases. This lease accounting standard took effect in 2019 after being issued in 2016. The goal was better transparency by showing lease commitments on company balance sheets.

In this article, you will learn why the IFRS 16 review matters, what questions the IASB is asking, and how you can share feedback before the deadline of 15 October 2025.

What is IFRS 16 and Why Does it Matter?

IFRS 16 Leases is one of the most significant standards in recent years. It replaced older rules that often kept lease obligations off balance sheets, which made company debt look smaller than it really was. With IFRS 16, nearly all leases now appear directly on balance sheets, giving investors a clearer picture of financial health.

For companies with many property, vehicle, or equipment leases, the change was huge. Transparency improved, but applying the standard also required new systems, data collection, and controls. Because of this, IFRS 16 continues to shape lease accounting processes worldwide.

What is a Post-Implementation Review (PIR)?

A Post-implementation Review is a formal step in the IASB process. It takes place a few years after the new rules go into effect. The goal is simple: check if the standard works in practice.

During this Post-implementation Review of IFRS 16, the IASB is looking at whether benefits outweigh costs, if disclosures give investors useful insight, and if companies, auditors, or regulators face unexpected issues. Feedback gathered will show where adjustments, guidance, or clarifications might be needed.

Why the IFRS 16 Review Happening Now?

The standard has been in force since 2019, so stakeholders now have more than five years of experience using it. This gives enough history to see both successes and pain points.

The IASB review of IFRS 16 will look at whether the objectives behind the standard are being met. Did lease transparency truly improve? Do investors now have better insight into commitments? Are companies burdened with complexity or cost? By inviting views now, the IASB hopes to ensure IFRS 16 remains effective and relevant.

Key Questions Under Review

The IASB has shared several themes where feedback will be most valuable. Stakeholders are invited to reflect on:

• Has IFRS 16 improved transparency in financial reporting?
• Do disclosures give investors and regulators the information they need?
• What challenges or costs have companies faced in applying the standard?
• Do any rules need clarification or change to improve consistency?
• Has IFRS 16 feedback shown any major gaps or weaknesses in lease reporting?

Each response will help the IASB determine if the standard still meets the intended goals.

How to Get Involved?

Anyone affected by lease accounting can join this consultation. The IASB has published a Request for Information: Post-implementation Review of IFRS 16 Leases. Here’s how to take part:

• Read the IASB announcement on the official IFRS website.
• Download the Request for Information PDF to review key questions.
• Prepare a comment letter on IFRS 16 to share your perspective.

If you wonder how to submit feedback on IFRS 16, the IASB site provides full instructions and a simple portal for uploading letters. Even short, practical comments can add value.

Deadline to Respond

The consultation window closes on 15 October 2025. The deadline for IFRS 16 feedback in October 2025 is strict, so waiting until the last moment is risky. Early submissions give the IASB more time to consider each point. If your company, firm, or group wants a voice in the process, planning will help you submit a strong response.

Why Your Feedback Matters

Every comment contributes to shaping the future of lease accounting. The IASB wants real-world input from companies, investors, and auditors who work with IFRS 16 daily. This IFRS lease accounting consultation is not just a formality. It is the main way to make sure the standard continues to reflect practical needs while serving financial statement users.

Whether your experience has been smooth or full of challenges, your insights carry weight. Engaging in this IFRS 16 consultation gives you the chance to improve the standard for the long term.

A friendly reminder: Many companies struggle with the complexity, data collection, and system changes IFRS 16 demands. While the IASB is reviewing the standard, organizations still need practical solutions to stay compliant today. That’s where tools like Black Owl Systems can help, simplifying lease data management and compliance under both IFRS 16 and ASC 842.

Improve Lease Accounting Today!

The IASB review of IFRS 16 gives you a chance to shape how lease accounting works in practice. Sharing feedback helps keep financial reporting transparent and useful for all stakeholders.

Take the next step today: read the announcement, download the Request for Information, and send your comment letter before 15 October 2025.

To make managing leases under IFRS 16 easier, consider booking a demo with Black Owl Systems. See how our tools simplify reporting, streamline compliance, and help your team stay prepared for any changes.