L_2017291EN.01000101.xml
| 9.11.2017 | EN | Official Journal of the European Union | L 291/1 |
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)
THE EUROPEAN COMMISSION,
Having regard to the Treaty on the Functioning of the European Union,
Having regard to Regulation (EC) No 1606/2002 of the European Parliament and of the Council of 19 July 2002 on the application of international accounting standards (1), and in particular Article 3(1) thereof,
Whereas:
| (1) | Commission Regulation (EC) No 1126/2008 (2) adopted certain international standards and interpretations that were in existence on 15 October 2008. |
| (2) | On 13 January 2016, the International Accounting Standards Board (IASB) published International Financial Reporting Standard (IFRS) 16 Leases. This standard aims to improve financial reporting on lease contracts. |
| (3) | Adoption of IFRS 16 implies consequential amendments to the following standards or interpretations of standards: IFRS 1, IFRS 3, IFRS 4, IFRS 7, IFRS 9, IFRS 13, IFRS 15, International Accounting Standard (IAS) 1, IAS 2, IAS 7, IAS 12, IAS 16, IAS 21, IAS 23, IAS 32, IAS 37, IAS 38, IAS 39, IAS 40, IAS 41, Interpretation of International Financial Reporting Interpretations Committee (IFRIC) 1, IFRIC 12, Interpretation of Standing Interpretations Committee (SIC) 29 and SIC-32. |
| (6) | The measures provided for in this Regulation are in accordance with the opinion of the Accounting Regulatory Committee, |
HAS ADOPTED THIS REGULATION:
Article 1
The Annex to Regulation (EC) No 1126/2008 is amended as follows:
| (a) | International Financial Reporting Standard (IFRS) 16 Leases is inserted as set out in the Annex to this Regulation; |
| (b) | IAS 1, IAS 2, IAS 7, IAS 12, IAS 16, IAS 21, IAS 23, IAS 32, IAS 37, IAS 38, IAS 39, IAS 40, IAS 41, IFRS 1, IFRS 3, IFRS 4, IFRS 7, IFRS 9, IFRS 13, IFRS 15, IFRIC 1, IFRIC 12, SIC-29 and SIC-32 are amended in accordance with IFRS 16 as set out in the Annex to this Regulation. |
Article 2
Each company shall apply the amendments referred to in Article 1, at the latest, as from the commencement date of its first financial year starting on or after 1 January 2019.
Article 3
This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.
This Regulation shall be binding in its entirety and directly applicable in all Member States.
Done at Brussels, 31 October 2017.
For the Commission
The President
Jean-Claude JUNCKER
(1) OJ L 243, 11.9.2002, p. 1.
(2) Commission Regulation (EC) No 1126/2008 of 3 November 2008 adopting certain international accounting standards in accordance with Regulation (EC) No 1606/2002 of the European Parliament and of the Council (OJ L 320, 29.11.2008, p. 1).
ANNEX
International Financial Reporting Standard 16
Leases
International Financial Reporting Standard 16 Leases
OBJECTIVE
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1. | This Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases. The objective is to ensure that lessees and lessors provide relevant information in a manner that faithfully represents those transactions. This information gives a basis for users of financial statements to assess the effect that leases have on the financial position, financial performance and cash flows of an entity. |
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2. | An entity shall consider the terms and conditions of contracts and all relevant facts and circumstances when applying this Standard. An entity shall apply this Standard consistently to contracts with similar characteristics and in similar circumstances. |
SCOPE
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3. | An entity shall apply this Standard to all leases, including leases of right-of-use assets in a sublease, except for:
| (a) | leases to explore for or use minerals, oil, natural gas and similar non-regenerative resources; |
| (b) | leases of biological assets within the scope of IAS 41 Agriculture held by a lessee; |
| (c) | service concession arrangements within the scope of IFRIC 12 Service Concession Arrangements; |
| (d) | licences of intellectual property granted by a lessor within the scope of IFRS 15 Revenue from Contracts with Customers; and |
| (e) | rights held by a lessee under licensing agreements within the scope of IAS 38 Intangible Assets for such items as motion picture films, video recordings, plays, manuscripts, patents and copyrights. | |
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4. | A lessee may, but is not required to, apply this Standard to leases of intangible assets other than those described in paragraph 3(e). |
RECOGNITION EXEMPTIONS (PARAGRAPHS B3–B8)
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5. | A lessee may elect not to apply the requirements in paragraphs 22–49 to:
| (a) | short-term leases; and |
| (b) | leases for which the underlying asset is of low value (as described in paragraphs B3–B8). | |
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6. | If a lessee elects not to apply the requirements in paragraphs 22–49 to either short-term leases or leases for which the underlying asset is of low value, the lessee shall recognise the lease payments associated with those leases as an expense on either a straight-line basis over the lease term or another systematic basis. The lessee shall apply another systematic basis if that basis is more representative of the pattern of the lessee's benefit. |
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7. | If a lessee accounts for short-term leases applying paragraph 6, the lessee shall consider the lease to be a new lease for the purposes of this Standard if:
| (a) | there is a lease modification; or |
| (b) | there is any change in the lease term (for example, the lessee exercises an option not previously included in its determination of the lease term). | |
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8. | The election for short-term leases shall be made by class of underlying asset to which the right of use relates. A class of underlying asset is a grouping of underlying assets of a similar nature and use in an entity's operations. The election for leases for which the underlying asset is of low value can be made on a lease-by-lease basis. |
IDENTIFYING A LEASE (PARAGRAPHS B9–B33)
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9. | At inception of a contract, an entity shall assess whether the contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Paragraphs B9–B31 set out guidance on the assessment of whether a contract is, or contains, a lease. |
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10. | A period of time may be described in terms of the amount of use of an identified asset (for example, the number of production units that an item of equipment will be used to produce). |
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11. | An entity shall reassess whether a contract is, or contains, a lease only if the terms and conditions of the contract are changed. |
Separating components of a contract
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12. | For a contract that is, or contains, a lease, an entity shall account for each lease component within the contract as a lease separately from non-lease components of the contract, unless the entity applies the practical expedient in paragraph 15. Paragraphs B32–B33 set out guidance on separating components of a contract. |
Lessee
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13. | For a contract that contains a lease component and one or more additional lease or non-lease components, a lessee shall allocate the consideration in the contract to each lease component on the basis of the relative stand-alone price of the lease component and the aggregate stand-alone price of the non-lease components. |
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14. | The relative stand-alone price of lease and non-lease components shall be determined on the basis of the price the lessor, or a similar supplier, would charge an entity for that component, or a similar component, separately. If an observable stand-alone price is not readily available, the lessee shall estimate the stand-alone price, maximising the use of observable information. |
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15. | As a practical expedient, a lessee may elect, by class of underlying asset, not to separate non-lease components from lease components, and instead account for each lease component and any associated non-lease components as a single lease component. A lessee shall not apply this practical expedient to embedded derivatives that meet the criteria in paragraph 4.3.3 of IFRS 9 Financial Instruments. |
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16. | Unless the practical expedient in paragraph 15 is applied, a lessee shall account for non-lease components applying other applicable Standards. |
Lessor
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17. | For a contract that contains a lease component and one or more additional lease or non-lease components, a lessor shall allocate the consideration in the contract applying paragraphs 73–90 of IFRS 15. |
LEASE TERM (PARAGRAPHS B34–B41)
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18. | An entity shall determine the lease term as the non-cancellable period of a lease, together with both:
| (a) | periods covered by an option to extend the lease if the lessee is reasonably certain to exercise that option; and |
| (b) | periods covered by an option to terminate the lease if the lessee is reasonably certain not to exercise that option. | |
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