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Application of International Financial Reporting Standard IFRS 16 (Leases) is mandatory with effect from 1 January 2019. The new Standard sets out a new approach to accounting for leases by lessees. While under IAS 17, the accounting treatment of a lease was previously determined on the basis of the transfer of risks and rewards incidental to ownership of the asset, in the future, each lease arrangement will, as a general rule, be accounted for by the lessee in a similar way to finance leases.

In conjunction with the adoption of IFRS 16, the methods used to account for leases as a lessor have also been reviewed, resulting in a change in accounting policy for selected items with effect from the financial year 2019. The change in accounting policy for lessors was applied retrospectively, with comparative figures restated. The opening balance sheet as at 1 January 2018 and figures for the financial year 2018 were restated accordingly.

Please find below an overview of the amendments.