Some Issues of Recognition and Reflection of Lease-Related Accounting Elements in Lessee Entities Based on International Financial Reporting Standards

The adoption of International Financial Reporting Standard 16 “Leases” introduced a fundamental transformation in lease accounting, substantially redefining the procedures for recognition and measurement of obligations in lessee entities. Prior to the introduction of this standard, operating lease obligations remained unrecognized on the balance sheet, significantly limiting the transparency and comparability of lessee financial statements. IFRS 16 has fundamentally improved this approach and mandated the recognition of a right-of-use asset and a corresponding lease liability for most lease arrangements, resulting in a more reliable and complete reflection of lessees' obligations in financial statements. This paper investigates certain unresolved issues in lessee accounting arising from the application of IFRS 16. The study focuses particularly on the classification of lease arrangements, as well as the initial recognition and measurement of right-of-use assets and lease liabilities. Employing a comparative and analytical methodology grounded in the provisions of IFRS 16 and related international financial reporting standards, the study finds that lease classification continues to exert a material influence on the financial position of lessee entities, while the recognition requirements though substantially improving transparency introduce considerable methodological complexity in practice. On this basis, the paper advances recommendations directed toward enhancing classification consistency and recognition accuracy, with direct practical implications for accounting harmonization in economies transitioning toward international financial reporting norms.