The transition from IAS 17 to IFRS 16 marks a significant shift in lease accounting standards. Previously under IAS 17, leases were classified as either operating or finance leases with distinct treatments; however, IFRS 16 mandates all leases to be recognized on the balance sheet, significantly altering financial statements and key ratios. This change notably impacts sectors heavily reliant on leasing, such as airlines, retail, and shipping, by increasing reported liabilities and affecting debt-equity ratios. The new standard aims to enhance transparency in financial reporting, providing stakeholders with a clearer picture of companies' lease obligations and improving comparability across entities. While listed companies face considerable adjustments under IFRS 16, unlisted firms may experience less impact due to different reporting requirements. Overall, the implementation of IFRS 16 is anticipated to lead to more accurate asset valuation, better capital allocation decisions, and potentially drive economic growth by reflecting a company's financial position more truthfully.