Getting lease accounting right starts with a simple but critical question: 👉 Is this contract a lease? Under IFRS 16, the answer to that question can have a significant impact on your balance sheet, profit and loss, and even loan covenants. Misclassify a contract, and your balance sheet might tell the wrong story raising unwanted audit questions. The tricky part is that many contracts don’t actually use the word “lease.” Some appear to be service agreements but are actually leases in disguise. Others seem like leases but turn out to be something else entirely. In this article, we’ll walk through how to identify a lease under IFRS 16, why it…