Applying effectively IFRS 16-leases

This paper analyzed the current property rental issue. This is an activity regularly performed at businesses, contributing to increasing the business's capacity to carry out other business activities without having to invest a large amount of capital from the beginning. From the perspective of financial reporting, leasing poses challenges and is a typical example of whether to apply the principle of substance over form or not. Therefore, the regulations on accounting for asset leases have evolved with many changes, most recently the promulgation and application of IFRS 16 on leases by the International Accounting Standards Board. Current regulations on accounting for asset lease contracts in Vietnam are still based on the old version of international standard IAS 17 with an approach based on risks and benefits. This article addressed important issues for effectively applying this standard in Vietnam.