IFRS 16 lease accounting for transport and logistics

LOIS gives transport and logistics finance teams one audit-ready platform for IFRS 16 calculations, modifications, journals and reporting across fleet, property and equipment leases, without spreadsheets.

Book a Demo Read the Freightways story
LOIS - IFRS 16 for transport and logistics

What makes IFRS 16 difficult for transport and logistics companies?

The difficulty sits in the volume, variety and frequency of change across fleet, property and equipment portfolios rather than in any one lease. Lease modifications, CPI (consumer price index) movements, renewals and decentralised records make spreadsheet-based compliance hard to control and explain at audit. LOIS centralises the data and automates the IFRS 16 accounting behind it.

85%+

of listed-company lease commitments sat off balance sheet before IFRS 16

US$3.3 trillion

in lease commitments held by listed companies

30 to 10,000+

leases supported in a single LOIS portfolio

Lease commitment figures: IASB, January 2016. Last reviewed 28 October 2026 by LOIS's CA-qualified lease accounting specialists.

How does IFRS 16 apply to logistics leases?

IFRS 16 puts almost every lease on the balance sheet. For logistics companies the hard part is deciding what counts as a lease: it turns on who controls the asset and directs its use, whoever owns it.

  • Typical contract

  • What IFRS 16 asks

Typical contract

What IFRS 16 asks

Trucks, vans and trailers

Many providers, monthly changes, CPI-linked rentals

Recognise a right-of-use asset and lease liability, then remeasure when payments, scope or term change.

Depots, warehouses and terminals

Rent reviews, break and extension options

Renewal incentives change measurement. Track notice dates so options aren't missed.

Forklifts and handling equipment

Exclusive use plus scheduled maintenance

A lease exists. Split out maintenance as a service cost, or combine both under the practical expedient.

Ferries, ships, rail and aircraft

Time charters with the supplier's crew

A lease if you decide destinations, cargo and voyages. Not a lease if the contract predetermines use and the crew holds those rights.

Short-term and low-value leases

12 months or less, or small-ticket assets

Exempt from balance sheet recognition. Low value means roughly US$5,000 when new, and not highly interrelated with other leased assets.

Read more on the lease rules behind this table.

Identify a lease guide IFRS 16 logistics guide

How does LOIS manage IFRS 16 across a logistics lease portfolio?

Process changes

LOIS processing lease modifications and CPI changes

How are modifications, CPI changes and renewals processed?

LOIS treats each change as a repeatable event. Finance records it, can action for the calculations to update, and the audit trail shows what changed and when. No schedule gets rebuilt by hand.

Audit trail

LOIS audit trail for IFRS 16 lease changes

How does LOIS stand up to audit?

Every modification and remeasurement is logged, calculations are transparent, and reports trace back to the lease record. When an auditor asks how a figure was derived, the answer is already in LOIS.

Lease events

LOIS timeline of lease events and milestones

How do you keep track of renewals and notice dates?

Portfolio timelines and automatic reminders flag rent reviews, expiries and options across depots and warehouses before they pass, so property and finance teams work from the same dates.

Fleet uploads

Fleet Transformation - Nov 2026

How does LOIS handle bulk fleet lease data?

Upload lease data from any provider in any standard format. LOIS cross-checks it against existing records and flags new leases, price changes, CPI adjustments, extensions and terminations.

GL outputs

LOIS reporting and GL-ready outputs

How does LOIS fit our ERP and group entities?

LOIS produces GL-ready journals and outputs that interface with major ERP systems, including SAP and Oracle, while keeping visibility across multiple entities and operating teams.

LOIS processing lease modifications and CPI changes

How are modifications, CPI changes and renewals processed?

LOIS treats each change as a repeatable event. Finance records it, can action for the calculations to update, and the audit trail shows what changed and when. No schedule gets rebuilt by hand.

How CPI adjustments work
LOIS audit trail for IFRS 16 lease changes

How does LOIS stand up to audit?

Every modification and remeasurement is logged, calculations are transparent, and reports trace back to the lease record. When an auditor asks how a figure was derived, the answer is already in LOIS.

What auditors focus on
LOIS timeline of lease events and milestones

How do you keep track of renewals and notice dates?

Portfolio timelines and automatic reminders flag rent reviews, expiries and options across depots and warehouses before they pass, so property and finance teams work from the same dates.

Explore property management
Fleet Transformation - Nov 2026

How does LOIS handle bulk fleet lease data?

Upload lease data from any provider in any standard format. LOIS cross-checks it against existing records and flags new leases, price changes, CPI adjustments, extensions and terminations.

Explore fleet management
LOIS reporting and GL-ready outputs

How does LOIS fit our ERP and group entities?

LOIS produces GL-ready journals and outputs that interface with major ERP systems, including SAP and Oracle, while keeping visibility across multiple entities and operating teams.

See ERP integrations

Trusted where IFRS 16 has to stand up to scrutiny

Every Freightways business, across New Zealand and Australia, once kept its own lease spreadsheets. Today one LOIS portfolio covers them all, and auditors have more comfort over an area once viewed as high risk.

"It's been great dealing with the LOIS team, they have been very supportive throughout the whole implementation process and beyond into BAU. They responded quickly to any queries and made the transition much easier than anticipated." Stephen Micallef, Group Financial Controller, Freightways

Read the Freightways story
Freightways-logo

See how LOIS handles IFRS 16 across your logistics leases

Book a demo and see fleet, property and equipment leases in one audit-ready system.

Book a Demo

Frequently asked questions about IFRS 16 for transport and logistics

Why is IFRS 16 particularly relevant to transport and logistics?

Transport and logistics businesses commonly lease vehicles, real estate, material handling equipment and other operational assets, so a large share of their obligations moved onto the balance sheet under IFRS 16. LOIS centralises that data, reporting and control in one audit-ready platform.

Can LOIS manage lease modifications and CPI changes?

Yes. LOIS treats modifications, CPI changes, extensions and terminations as repeatable events. Finance records the change, can action for the IFRS 16 calculations to update, and the audit trail shows what changed and when, so nobody rebuilds amortisation schedules by hand.

Can LOIS support decentralised finance teams?

Yes. Individual businesses keep maintaining their own lease information while group finance sees one consistent portfolio. Freightways works this way: its separate businesses once kept their own lease spreadsheets and now work from one central LOIS system.

How does LOIS support audit?

LOIS gives auditors transparent calculations, controlled lease data, a full audit trail for every modification and reports that trace back to the underlying leases. LOIS consultants are CA-qualified accountants, and LOIS Managed Service can run your calculations and deliver audit-ready monthly packs.

How do logistics companies tell whether a contract contains a lease?

A contract contains a lease when the customer has exclusive use of an identified asset and decides how and for what purpose it's used throughout the term. A forklift hire with scheduled maintenance is a lease. A ferry charter where the supplier's crew holds predetermined decision-making rights isn't. Read the Identify a lease guide.

Does LOIS work for transport and logistics groups outside Australia and New Zealand?

Yes. LOIS automates IFRS 16, AASB 16, FRS 102 and FASB ASC 842, and supports organisations in Australia, New Zealand, the UK, Ireland and Southern Africa. A multi-country group can hold its leases, entities and standards in one platform. See LOIS lease accounting software.