Abstract:

Notes to the financial statements, together with other annual financial statements, are an important source of information for financial statements users, especially for shareholders and creditors. The notes provide more detailed information about elements of financial statements. In this paper, special attention was paid to the notes to financial statements related to operating leases. In 2016, the International Accounting Standards Board issued a new accounting standard on leases - IFRS 16 which changes the presentation of operating leases in the lessee’s financial statements in relation to former accounting standard - IAS 17. The most significant change introduced by the new standard effective for annual periods beginning on or after 1 January 2019 is presentation of right-of-use assets and related long-term liabilities derived from operating leases in the balance sheet of the lessee.