From 1 January 2019, SFRS(I) 16 or FRS 116 Lease (collectively referred to as FRS 116) is effective in Singapore for listed and unlisted companies respectively. The standards are aligned with IFRS 16 Leases issued by the IASB.
FRS 116 represents the first major overhaul of lease accounting in decades. The new Standard replaces FRS 17 'Leases' along with three Interpretations (INT FRS 104 'Determining whether an Arrangement contains a Lease', INT FRS 15 'Operating Leases-Incentives' and INT FRS 27 'Evaluating the Substance of Transactions Involving the Legal Form of a Lease').
FRS 116 will affect most companies that are involved in leasing, and will have a substantial impact on the financial statements of lessees of property and high value equipment.
This publication Insights into FRS 116: Major changes to lease accounting [ 1978 kb ] by Grant Thornton Singapore explains the key changes to the accounting for leases by lessees and provides practical insights into its application and impact.
