Commencement date
The date on which the lessor makes the underlying asset available for use by the lessee.
Definition
The commencement date is when the lease term begins and the lessee starts recognising the right-of-use asset and lease liability. It is distinct from the date a lease agreement is signed.
Why it matters
The commencement date is the measurement date for the initial lease liability calculation. The discount rate is applied at this date.
In AuditLease
The commencement date is a required field in AuditLease and is used as the start point for all amortisation and depreciation schedule calculations.
Related terms
Put this into practice with AuditLease
AuditLease handles IFRS 16 and FRS 102 lease calculations, statutory note generation, journal entries, and audit evidence — so your team spends less time on spreadsheets and more time on judgements.
This definition is for general information only and is not accounting or legal advice. Definitions are based on IFRS 16, FRS 102, and associated guidance published by the IFRS Foundation and the Financial Reporting Council. Users should refer to the applicable accounting standards and their professional advisers for judgement-specific matters.