What workarounds did people try for "Why does IFRS 16 create so much extra work?"?

Community members documented 3 workarounds: 1. Going outside the accounting system to calculate true costs 2. Working for smaller companies exempt from complex lease standards 3. Fully expensing the costs in the current period

Why does IFRS 16 create so much extra work?

The new lease accounting rules complicate covenant calculations by forcing teams to count leases as financial liabilities. They also obscure the true profitability of divisions with high rental costs and cause confusion over whether direct costs like legal fees and stamp duty should be capitalized or expensed.

Overview

Last updated Oct 30, 2026

People affected4 accounts across 1 forum

Workarounds found3 items attempted

Community agreement53 total upvotes

What people tried

Every workaround mentioned in the threads below. We haven’t tested any of them — and nobody here is claiming they worked.

3 items+ Contribute

Found another way around this?

Share your steps and trade-offs so fellow engineers don't have to reinvent the wheel. No account required.

1
Going outside the accounting system to calculate true costs
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2
Working for smaller companies exempt from complex lease standards
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3
Fully expensing the costs in the current period
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In their words

Unedited, grouped by where they were said, most upvoted first within each place, each linked to the thread it came from.

r/Accounting4 people · September 2026 – October 2026

“We started analyising the profitability of one small division where rental / lease costs are a considerable part of the cost base. It was only here I realised how ridiculous IFRS 16 is.”source ↗

snakesnake9 · r/Accounting · 53 upvotes

“It creates additional work for zero benefit.”source ↗

TheProfessionalEjit · r/Accounting · 1 upvotes

“We have incurred £90,000 in stamp duty and £90,000 in legal fees. These have been fully expensed.”source ↗

“My question is that treatment is correct?”source ↗

“Under the OLD lease accounting rules could these costs be amortised over the life of the lease?”source ↗

“Under the NEW lease accounting rules would these costs be considered direct costs and capitalised?”source ↗

superman_yaris · r/Accounting

“It is not my financial liablity bro, stop counting it in my covenant calculations.”source ↗

csky · r/Accounting

Where this came up

r/Accounting accounting compliance finance financial reporting regulations