The IASB has published IFRS 16 Leases. The new standard comes into effect on 1 January 2019. Virtually every company uses rentals or leasing as a means to obtaining access to assets and will therefore be affected by the new standard. Earlier on April 16, 2016, IASB issued a clarification on IFRS 15 'Revenue from Contracts with Customers.

Required:

With absolute clarity, explain how IFRS 16 will affect leases as a financing solution and how IFRS 15 affected revenue recognition