IFRS 16 Lease Disclosures: Stepping it up from ASC 840 to ASC 842


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IFRS 16 – Illustrative disclosures

IFRS 16 – Illustrative disclosures


Your essential guide to the new lease disclosures

Your essential guide to the new lease disclosures

  • Read more

    IFRS 16 Illustrative disclosures

    IFRS 16 Illustrative disclosures

    Your essential guide to the new lease disclosures

    Your essential guide to the new lease disclosures (PDF 1.80 MB)

Your essential guide to the new lease disclosures

IFRS 16 Leases requires lessees to recognise new assets and liabilities under an on-balance sheet accounting model that is similar to current finance lease accounting. 

Key metrics will be affected by the recognition of new assets and liabilities, and differences in the timing and classification of lease income/expense.

Our illustrative disclosures supplement  (PDF 1.8 MB) will help you to navigate the new requirements and enable you to focus on the information that is relevant to users of financial statements. 

General disclosure objective

IFRS 16 contains both quantitative and qualitative disclosure requirements. The objective of the disclosure requirements is to give a basis for users of financial statements to assess the effect that leases have on the financial statements.

Entities should focus on the disclosure objective, not on a fixed checklist. 

Illustrative disclosures

IFRS 16 offers a range of transition options. This guide illustrates the modified retrospective approach, using a number of the practical expedients available under this approach, and the retrospective method.

Find out more

Visit our IFRS – Leases hot topics page for more insight on lease accounting under IFRS.

For an illustration of the pre-implementation disclosures that need to be included in 2017 financial statements, see our Guide to annual financial statements – Illustrative disclosures

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Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Table of Contents

  • Home
  • General
  • USAS
  • Agency
  • CIST/Shared
  • General Revenue
  • Capital
  • Interfund
  • Pass-Through
  • Bonds
  • Notes
    & Samples
  • Universities
  • Global

Notes & Samples
1 – 9  |  10 – 18  |  19 – 32

  • Instructions for the ONDSS Web Application
  • Note 1 – Summary of Significant Accounting Policies
    • Fund Structure
    • Basis of Accounting
    • Net Position and Fund Balances
    • Budgets & Budgetary Accounting
    • Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources and Fund Balances/Net Position
    • Sample
  • Note 2 – Capital Assets
    • Summary of Changes in Capital Assets
    • Instructions for the CANSS Web Application
    • SPA Capital Assets Reports
    • Sample
  • Note 3 – Deposits, Investments and Repurchase Agreements
    • General
    • USAS Transaction Entries
    • Instructions for the DINSS Web Application
    • Sample
  • Note 4 – Short-Term Debt
    • Sample
  • Note 5 – Long-Term Liabilities
    • USAS Transaction Entries
    • Reporting Long-Term Liabilities
    • Notes and Loans Payable
    • Claims & Judgments
    • Employee Compensable Leave
    • Compensable Leave Liability Methodology
    • Bonds Payable
    • Capital Leases
    • Liabilities Payable from Restricted Assets
    • Pollution Remediation Obligations
    • Instructions for the LTLN Web Application
    • Sample
  • Note 6 – Bonded Indebtedness
    • Bonds Payable Disclosures
    • Accounting for Early Extinguishments and Advance Refunding
    • Demand Bonds
    • Build America Bonds
    • Derivatives
    • Bond Payable Entries
    • Reporting of Issuance of Long-Term Debt
    • Conduit Debt
    • Pledged Future Revenues
    • Sample
  • Note 7 – Derivatives
    • Summary of Activity Table
    • Hedging Derivative Disclosures Overview
    • Hedging Derivative Disclosures – Risks
    • Investment Derivative Disclosures
    • Derivatives with Contingent Features
    • Synthetic Guaranteed Investment Contracts
    • Sample
  • Note 8 – Leases
    • Operating Leases
    • Capital Leases
    • Instructions for the LNSS Web Application
    • Sample
  • Note 9 – Defined Benefit Pension Plans and Defined Contribution Plan
    • Administrators
    • Agencies
    • Universities


  • Contact Information
  • Deadlines
  • Address & Number of Copies to Deliver
  • Submission Requirements
    • Simplified Reporting Agencies
    • Full Reporting Agencies
    • Agencies that do not issue Stand-Alone or Audited AFRs
    • Agencies that issue Stand-Alone or Audited AFRs


  • Agency Fiscal Year-End USAS Adjustments and AFR Checklist
    • Step 1 – General Cleanup
    • Step 2 – Review USAS Balances
    • Step 3 – Investments
    • Step 4 – Interagency Activity
    • Step 5 – Binding Encumbrance and Payables
    • Step 6 – General Revenue Reconciliation
    • Step 7 – Statement of Cash Flows
    • Step 8 – Notes to the Financial Statements
    • Step 9 – Supplementary Schedules
    • Step 10 – Analyze USAS Reports
    • Step 11 – Review USAS Information
    • Step 12 – Verify DAFRs and Complete AFR
    • View Entire Checklist
  • FAQs
  • Glossary
  • Appendices


  • Templates & Sample Exhibits
  • Working Papers
    • Long-Term Liabilities Basis Conversion (FT12) Instructions
    • Long-Term Liabilities Proprietary Funds (FT05) Instructions
  • AFR Web Applications
  • AFR Ad Hoc Review Reports

Training/Work Sessions

  • AFR Work Sessions
  • AFR Training

Reporting Requirements for Annual Financial Reports of State Agencies and Universities

Notes & Samples

Notes to the Financial Statements


The notes to the financial statements communicate information necessary for a fair presentation of financial position and results of operations that is not readily apparent from, or not included in, the financial statements themselves.


Present each note in a separate Microsoft Word document — include the note number, note name, agency number and agency name as a header on each note.

Agencies must sequence notes by number/topic as indicated in the left navigation.

Each note includes a Sample. The Sample shows what is required for fair presentation in conformance with GAAP. The note samples include required formatting for certain disclosures. The disclosures within each note vary based on each agency’s situation.

Use the formatting provided (including the note number/topic sequence) as these schedules are critical to consolidating the notes to the statewide financial statements.

To reduce the number of disclosures in the agency’s report:

  • Do not repeat the accounting policy on Employee’s Compensable Leave in Note 5 if that policy is already stated in Note 1 .
  • Do not repeat information in Note 6 if it is already presented in the bond schedules. For more information, see Bond Schedules and Samples .
  • Note 3 is not applicable if the agency does not have investments carried on the balance sheet and all of the agency’s cash is deposited in the state’s Treasury. Note 3 disclosure is required by the agency if the agency has any cash or investments held in a local bank.
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Glenn Hegar
Texas Comptroller of Public Accounts
Questions? Contact statewide.accounting@cpa.texas.gov

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