Lease
A contract that conveys the right to use an asset for a period of time in exchange for consideration.
Definition
Under IFRS 16 and amended FRS 102, a lease exists when a contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. Control means the customer has the right to obtain substantially all of the economic benefits from the asset and the right to direct how and for what purpose it is used.
Why it matters
Whether a contract contains a lease determines whether it falls within the scope of IFRS 16 or FRS 102 Section 20A. Service contracts that do not convey control of an identified asset are outside scope.
In AuditLease
AuditLease stores and calculates lease accounting data for all in-scope lease contracts. The lease register is the starting point for all calculations, journals, and statutory note disclosures.
Related terms
Official sources
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.