Lessor
The party that provides the right to use an underlying asset in exchange for lease payments.
Definition
The lessor owns or controls the underlying asset and grants the lessee the right to use it. Lessor accounting was largely unchanged by IFRS 16 — lessors continue to classify leases as either operating leases or finance leases.
Why it matters
Lessor accounting is a separate topic from lessee accounting. IFRS 16 and FRS 102 changes primarily affect lessees. If your organisation is a lessor, different requirements apply.
In AuditLease
AuditLease focuses on lessee accounting. Lessor accounting is outside the current scope of the platform.
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.