IFRS 16 Lease Calculation Tool

1

Lease & Entity Details

Basic identification of the arrangement

Reporting entity (Lessee) Required

Lessor name (optional)

Currency code

Underlying asset description

Asset class

Financial year-end month

Lease commencement date Required

2

Lease Term

Used to assess the non-cancellable period and reasonably certain options

Non-cancellable term

yrs mo

Useful life of asset (years) optional

Ownership transfers at end of term

Purchase option reasonably certain

Renewal option reasonably certain

yrs mo

Early termination reasonably certain

yrs mo

Effective term = non-cancellable term + renewal (if certain) − early termination shortfall (if certain). Depreciation uses the shorter of the lease term and useful life, unless ownership transfers or a purchase option is reasonably certain to be exercised — in which case the useful life is used.

3

Payment Terms

Lease payment frequency, timing and structure

Payment frequency

Payment timing

Payment structure

Rent-free periods at start optional

Payment per period Required

Annual escalation %

Residual value guarantee optional

4

Discount Rate & Initial Costs

Incremental borrowing rate and ROU asset adjustments

Discount rate (% p.a.) Required

Initial direct costs optional

Lease incentives received optional

Restoration / dismantling cost (PV) optional

Estimated residual value of ROU asset optional

5

Practical Expedients

IFRS 16 paras 5–8

Apply short-term lease (≤12 months) or low-value asset exemption — expense on a straight-line basis, no ROU asset or lease liability recognised

IFRS 16 Lease Calculation Tool

Lease & Entity Details

Lease Term

Payment Terms

Discount Rate & Initial Costs

Practical Expedients

Balance Run-Off — Lease Liability vs Right-of-Use Asset

User Details Required