The new standard takes effect in January 2019. IFRS 16 eliminates the current dual accounting model for lessees, which distinguishes between on-balance sheet finance leases and off-balance sheet operating leases. Instead, there is a single, on-balance-sheet accounting model that is comparable to current finance lease accounting.
Lessor accounting remains alike to existing practice, i.e., lessors continue to classify leases as finance and operating leases.
PwC has put together a video on the new standards that will be tested for the 2019 CFE writers. Please click here to view this clip.