Lessee tool for right-of-use asset, lease liability, and interest and depreciation schedule under IFRS 16 or TFRS 16.
Needs under international and Turkish financial reporting standards are assessed together with the nature of each transaction and the company’s reporting objectives.
IFRS/TFRS knowledgeThis tool is for education and demonstration only. Actual IFRS 16 lease measurements must follow entity policies, contract terms and independent audit/advisory judgement.
IFRS 16 is issued by the IFRS Foundation. TFRS 16 is the Turkish adoption of the same standard, published by KGK, and applies to entities that report under TFRS. Consult the primary standard for the current text.
Review date: September 20, 2026
IFRS 16 or TFRS 16 lessee tool for right-of-use asset, lease liability, interest and depreciation schedule.
IFRS 16 Leases is the standard issued by the IFRS Foundation for the recognition, measurement, presentation and disclosure of leases. TFRS 16 is the Turkish adoption of the same standard. IFRS 16 is not mandatory in every jurisdiction or every entity; it applies only where the local financial reporting framework requires or permits IFRS or TFRS reporting.
The tool computes, for a single lessee lease with equal periodic payments and a constant discount rate, the initial lease liability, the initial right-of-use asset, the period-by-period interest and principal split of the liability, and the straight-line depreciation of the right-of-use asset. It is a measurement tool for lessee reporting under IFRS 16 or TFRS 16.
The initial lease liability is the present value of the future lease payments and, where applicable, the expected residual value guarantee and the exercise price of a purchase option that is reasonably certain to be exercised. In each period the opening liability accrues interest at the period rate, the payment is applied, and the closing liability equals the remainder.
L0 = sum(P_t / (1 + i)^t) + G/(1+i)^n + O/(1+i)^n
At commencement the right-of-use asset equals the initial lease liability plus prepaid lease payments and initial direct costs, less lease incentives received, plus the present value of restoration or dismantling obligations. This tool depreciates the right-of-use asset straight-line over the lease term or the useful life of the underlying asset, at the user’s choice.
ROU0 = L0 + prepaid + initialDirectCosts − incentives + restoration
IFRS 16 paragraph 26 requires the interest rate implicit in the lease when it is readily determinable; otherwise the lessee incremental borrowing rate. The tool does not estimate or validate the rate. You enter it as an annual effective rate, and the tool converts it to the period rate that matches the payment frequency.
i_period = (1 + i_annual)^(1 / periodsPerYear) − 1
When payments are made at the beginning of each period the first payment is applied without interest, so the initial liability is smaller than under end-of-period timing. The tool reflects this choice both in the present-value discounting and in the schedule.
A lessee may elect not to recognise a right-of-use asset and a lease liability for (a) leases with a term of 12 months or less at commencement and no purchase option, and (b) leases where the underlying asset is of low value. The short-term election is made by class of underlying asset; the low-value election is made on a lease-by-lease basis. Low value is assessed on an absolute basis by reference to the value of the underlying asset when new, and the Standard does not set a fixed monetary threshold. Elected leases are expensed on a straight-line or another systematic basis.
The example shows the shape of the calculation and should be used only to sanity-check the tool.
Equal periodic payments over one lease term, a single constant discount rate, a single currency, straight-line depreciation of the right-of-use asset, no variable payments, no reassessment during the term. Rounding is applied at presentation only.
The tool does not handle variable lease payments (index-linked, rate-linked, usage-based or turnover-based), index or rate remeasurement, lease modifications, early termination, impairment of the right-of-use asset, foreign-currency translation, sale-and-leaseback transactions, subleases, lessor accounting, US GAAP ASC 842, taxes and VAT, irregular payment dates or day-count conventions. It does not determine whether a contract is or contains a lease and does not replace professional judgment on lease term, discount rate or non-lease components.
IFRS 16 and US GAAP Topic 842 differ on lessee lease classification, expense recognition patterns and several presentation and disclosure requirements. This tool implements IFRS 16 or TFRS 16 only and does not produce an ASC 842 result.
The primary source for IFRS 16 is the IFRS Foundation issued-standards page. For entities reporting under TFRS in Türkiye, the Public Oversight, Accounting and Auditing Standards Authority (KGK) publishes the Turkish translation of the Standard.
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