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Institute For Oil & Gas Training
OGI-1141 New

IFRS 16 – Leases for Rigs & Vessels Training Course

Duration
5 days
CPD hours
15
Language
English
Next date
05 Oct 2026
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Overview

IFRS 16 – Leases is a specialist financial reporting course designed for oil and gas organisations managing rigs, vessels, offshore assets, marine equipment and other leased operational resources. The IFRS 16 – Leases Training Course from Institute For Oil & Gas Training develops the practical capability required to identify leases, measure lease-related balances and apply financial reporting requirements to complex petroleum industry arrangements.

Oil and gas companies frequently enter into agreements involving drilling rigs, offshore support vessels, floating production units, accommodation vessels, specialised marine equipment, logistics assets and other operational resources. These arrangements often contain contractual terms that require careful assessment before determining the appropriate accounting treatment. A contract described as a service agreement, charter arrangement, equipment hire agreement or operational support contract can contain an identified asset and therefore require detailed lease assessment under IFRS 16.

The course addresses the practical skills required to perform lease identification and distinguish a lease from a service contract. Participants examine the significance of an identified asset, the right to obtain economic benefits and the right to direct the use of that asset. This distinction is particularly important in oil and gas operations where contracts frequently combine equipment, crew, maintenance, logistics and other services.

The IFRS 16 framework introduces a right of use asset and lease liability for many leases recognised by a lessee. For organisations operating high-value rigs and vessels, the resulting balances can have a significant effect on financial statements, asset registers, liabilities, depreciation, interest expense and management reporting. Accurate lease liability measurement therefore requires disciplined analysis of contractual terms, lease periods, payments and discount rates.

Institute For Oil & Gas Training structures this course around the operational realities of petroleum companies. The content focuses on the financial reporting implications of rig and vessel arrangements rather than treating leases as generic accounting exercises. Participants work through situations involving lease commencement, modifications, variable payments, renewal options, termination provisions, embedded lease arrangements and service components.

A major focus is the assessment of service contract versus lease arrangements. Oil and gas contracts often involve a supplier providing an asset together with personnel and operational services. Participants learn how to analyse whether the customer controls the use of an identified asset and how contractual rights influence the accounting conclusion.

The course also examines embedded lease arrangements. These arise when a lease is contained within a wider contract rather than being presented as a separate lease agreement. Identifying such arrangements supports more complete lease accounting and reduces the risk of overlooking lease-related rights and obligations within procurement and operational contracts.

Participants also develop practical knowledge of short term and low value exemptions, lease commencement, initial measurement and subsequent accounting. The course explains how lease liability measurement connects with the right of use asset and how changes in contractual arrangements affect subsequent accounting.

Discount rate determination is another core area. The appropriate rate affects the present value of lease payments and therefore the initial lease liability and related right of use asset. Participants examine the principles governing discount rate determination and apply them to oil and gas lease scenarios.

For corporate finance, accounting, procurement, contracts and asset management teams, IFRS 16 requires collaboration between financial reporting and operational functions. Institute For Oil & Gas Training therefore approaches the subject from a cross-functional perspective, helping organisations strengthen the connection between contractual information, asset management and financial reporting.

The course supports organisations seeking consistent processes for lease assessment, documentation, measurement and reporting. It also strengthens the ability of professionals to communicate accounting conclusions clearly to finance leadership, contract owners, auditors and operational stakeholders.

Objectives

  • Understand the core principles of IFRS 16 – Leases within an oil and gas corporate environment.

  • Apply structured lease identification procedures to rig, vessel, equipment and operational contracts.

  • Assess whether an arrangement contains an identified asset.

  • Determine whether a customer has the right to obtain economic benefits from use of an asset.

  • Assess the right to direct the use of an identified asset.

  • Distinguish a service contract versus lease arrangement using relevant contractual characteristics.

  • Identify embedded lease components within wider service and supply contracts.

  • Apply short term and low value exemptions appropriately.

  • Understand the recognition principles for a right of use asset.

  • Apply lease liability measurement principles to relevant contractual arrangements.

  • Understand the relationship between lease payments, present value and lease liabilities.

  • Apply appropriate principles for discount rate determination.

  • Understand the accounting implications of lease commencement.

  • Assess the treatment of lease modifications and changes to contractual terms.

  • Analyse the financial reporting effects of rig and vessel lease arrangements.

  • Strengthen coordination between finance, procurement, contracts and operational teams.

  • Improve documentation of lease assessments and accounting conclusions.

  • Support consistent lease accounting policies across oil and gas operations.

  • Strengthen the quality of information provided to financial reporting teams.

  • Improve professional confidence when reviewing complex lease arrangements.

Training methodology

Institute For Oil & Gas Training delivers the course through an applied corporate training methodology focused on practical financial reporting decisions in the oil and gas environment.

Industry Case Studies

Participants examine realistic oil and gas contract scenarios involving drilling rigs, offshore vessels, marine equipment and operational support arrangements. Each case focuses on the accounting questions that arise from contractual rights and obligations.

Contract Analysis Exercises

Practical exercises require participants to review contractual characteristics and identify whether an arrangement contains a lease. Particular attention is given to the identified asset, substitution rights, control over use and the right to direct the use.

Measurement Simulations

Participants work through lease liability measurement and right of use asset calculations using structured business scenarios. Exercises address commencement accounting, payment schedules and discount rate determination.

Service Contract Versus Lease Scenarios

Participants compare arrangements that contain equipment and services with arrangements that transfer control over the use of an identified asset. This approach strengthens judgement when reviewing complex operational contracts.

Embedded Lease Workshops

Participants analyse wider service and supply arrangements to identify embedded lease components. The exercises connect procurement language with financial reporting requirements.

Group Discussions

Cross-functional discussions explore the responsibilities of finance, procurement, contracts, operations and asset management teams. This helps participants understand how lease accounting information flows across the organisation.

Real-World Reporting Scenarios

The course uses practical scenarios covering lease modifications, renewal options, variable payments, exemptions and changes in contractual arrangements. Participants focus on documenting accounting conclusions and supporting financial reporting processes.

Organisational impact

A structured approach to IFRS 16 – Leases strengthens financial reporting processes across oil and gas organisations. Accurate lease identification helps companies establish whether operational contracts contain lease components and supports more complete recognition of relevant financial statement balances.

The course improves the connection between procurement and financial reporting. Contracting teams often hold the information required to determine asset specifications, contractual rights, payment structures, renewal provisions and operational control. Finance teams require this information to perform appropriate lease assessments. Better coordination creates a stronger information flow between commercial and financial functions.

Accurate identification of an identified asset also supports more consistent treatment of rig and vessel arrangements. Where contracts involve dedicated equipment or operational assets, organisations need a disciplined approach to assessing whether the customer controls the use of the asset. Participants learn a structured method that supports documented and repeatable assessments.

Improved lease liability measurement supports the integrity of financial reporting. Lease liabilities depend on the contractual payment structure and relevant measurement assumptions. Strengthening the underlying assessment process helps reduce avoidable inconsistencies in financial reporting records.

The right of use asset also requires appropriate recognition and subsequent accounting. Understanding the relationship between the right of use asset and lease liability enables finance teams to maintain more coherent accounting records and reporting processes.

Better discount rate determination supports the measurement process. The course gives finance professionals a practical framework for considering relevant discount rate principles when measuring lease obligations.

The training also helps organisations address embedded lease risks. A lease does not always appear as a clearly labelled standalone agreement. Identifying lease components within broader service contracts strengthens contract review and reduces the risk of incomplete lease registers.

Consistent treatment of short term and low value exemptions can also support stronger internal processes. Organisations benefit from clearly documented criteria and consistent application across relevant contracts.

From a governance perspective, stronger lease assessment procedures support audit readiness and financial reporting controls. Clear documentation of the contract analysis, identified asset assessment, measurement approach and accounting conclusion creates a more transparent process for internal review and external assurance.

For multinational oil and gas groups, consistent processes are particularly important where multiple business units manage different categories of rigs, vessels, equipment and service arrangements. A common understanding of IFRS 16 principles supports greater consistency in financial reporting practices across operational functions.

The course also supports more effective communication between senior finance leadership and operational stakeholders. Participants develop the ability to explain why specific contractual features affect lease accounting and how operational decisions influence financial reporting.

Personal impact

Participants develop specialist knowledge of IFRS 16 – Leases that directly supports responsibilities in financial reporting, accounting, contracts, procurement and asset management.

Finance professionals strengthen their ability to assess lease arrangements, determine relevant accounting treatment and support accurate measurement. They gain greater confidence when reviewing complex rig and vessel contracts and explaining the resulting accounting considerations.

Accounting managers and financial reporting specialists develop stronger capabilities in lease identification, right of use asset recognition and lease liability measurement. They also strengthen their understanding of how contractual changes affect subsequent accounting.

Contracts and procurement professionals gain a clearer understanding of how contractual structures influence financial reporting. This helps them provide finance teams with relevant information about identified assets, substitution rights, payment structures, renewal terms and operational control.

Asset management professionals strengthen their understanding of how asset-related arrangements affect financial reporting. This supports better coordination between operational records and finance processes.

Internal audit and governance professionals gain practical insight into the controls surrounding lease assessment and documentation. This supports more effective review of lease registers, contract assessments and measurement processes.

Managers and senior professionals also strengthen their ability to communicate across departments. IFRS 16 implementation is not solely a finance responsibility, and effective collaboration between finance, commercial and operational functions is essential to maintaining reliable information.

The course further develops professional judgement. Participants learn to analyse contractual substance rather than relying only on contract titles. This is particularly valuable where oil and gas agreements combine assets, services and operational responsibilities.

Who should attend

Finance Directors and Financial Controllers

Designed for senior finance leaders responsible for financial reporting policies, governance, reporting quality and oversight of lease accounting.

Financial Reporting Managers

Relevant for professionals responsible for IFRS reporting, accounting policies, financial statement preparation and lease reporting processes.

IFRS and Technical Accounting Professionals

Supports specialists who assess complex transactions and determine appropriate IFRS accounting treatments.

Accountants and Senior Accountants

Provides practical knowledge for professionals responsible for recording, reconciling and reporting lease-related balances.

Oil and Gas Finance Professionals

Relevant for finance teams working directly with rigs, vessels, production assets, equipment and petroleum operations.

Contracts Managers

Helps commercial professionals understand how contractual terms influence lease identification and financial reporting.

Procurement Managers

Supports professionals involved in sourcing vessels, rigs, equipment and operational services where lease components require assessment.

Asset Managers

Provides insight into the financial reporting implications of asset-related arrangements and operational control.

Internal Auditors

Strengthens understanding of lease accounting controls, documentation and assessment processes.

Commercial Managers

Helps professionals evaluate contractual structures while understanding their implications for corporate financial reporting.

Senior Operations Managers

Provides operational leaders with a clearer understanding of how asset-use arrangements affect finance and reporting teams.

Course outline

This module establishes the core principles of IFRS 16 – Leases and connects them with the contractual environment of oil and gas companies. Participants examine the characteristics that distinguish leases from service arrangements and develop a structured approach to lease identification.

  1. IFRS 16 Leases

    • Establishes the principal accounting requirements for leases.

    • Requires assessment of whether a contract contains a lease.

    • Provides the framework for recognising and measuring relevant lease assets and liabilities.

    • Supports consistent analysis of control over the use of identified assets.

    Learning Outcomes

    • Explain the core principles of IFRS 16.

    • Apply lease identification concepts to oil and gas contracts.

    • Assess identified assets and control over their use.

    • Distinguish leases from service arrangements using contractual substance.

This module focuses on the practical assessment of rig, vessel and marine equipment arrangements. Participants examine contractual structures where an asset is combined with crewing, maintenance, logistics or other operational services.

  1. IFRS 15 Revenue Standard

    • Provides the recognised framework for revenue from contracts with customers.

    • Helps participants understand the distinction between lease accounting and service arrangements.

    • Supports analysis of service components within wider commercial contracts.

    • Provides useful context when assessing contracts that combine asset access with operational services.

    Learning Outcomes

    • Analyse rig and vessel contracts for lease characteristics.

    • Identify embedded leases within wider operational agreements.

    • Assess service components alongside identified assets.

    • Document the reasoning supporting a lease or service conclusion.

This module addresses the measurement mechanics that follow lease identification. Participants examine the initial recognition of the right of use asset and lease liability and connect contractual payment information with financial reporting balances.

  1. IAS 36 Impairment Standard

    • Establishes principles for identifying and accounting for impairment of assets.

    • Provides relevant context for assessing the carrying amounts of recognised assets.

    • Supports consideration of impairment issues affecting right of use assets.

    • Helps finance professionals connect lease accounting with wider asset reporting requirements.

    Learning Outcomes

    • Understand right of use asset recognition.

    • Apply lease liability measurement principles.

    • Analyse payment structures affecting measurement.

    • Understand discount rate determination.

    • Explain the relationship between right of use assets and lease liabilities.

This module examines situations requiring additional accounting assessment after initial lease identification. Participants consider short term and low value exemptions, lease modifications, changes in contractual terms and variable elements.

  1. IAS 8 Accounting Policies

    • Establishes principles for accounting policies and changes in accounting estimates.

    • Supports consistent development and application of accounting policies.

    • Provides relevant context for documenting accounting approaches and judgements.

    • Reinforces the importance of consistency and appropriate disclosure of accounting policy information.

    Learning Outcomes

    • Apply relevant exemption principles.

    • Assess lease term changes and contractual modifications.

    • Understand the accounting implications of changes in lease arrangements.

    • Improve consistency in documenting lease accounting policies.

    • Analyse complex changes affecting rig and vessel leases.

This module brings the technical and operational elements together and focuses on applying IFRS 16 across corporate lease portfolios. Participants examine reporting processes, documentation, controls and communication between finance, contracts, procurement and operations.

  1. IAS 1 Presentation Standard

    • Establishes general principles for the presentation of financial statements.

    • Provides context for presenting assets, liabilities and related financial information.

    • Supports clear classification and presentation of lease-related balances.

    • Helps finance teams connect lease accounting with broader financial statement presentation requirements.

    Learning Outcomes

    • Apply IFRS 16 principles across corporate lease portfolios.

    • Strengthen controls over lease identification and measurement.

    • Improve documentation supporting financial reporting.

    • Connect operational contracts with accounting records.

    • Communicate lease accounting conclusions to finance and commercial stakeholders.

    • Apply the course concepts to complex rig and vessel scenarios.

Certificate

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon successfully finishing the course.

The certificate recognises completion of the training programme. Attendance throughout the scheduled course is required to receive the Certificate of Completion.

Course dates

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,800

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,800

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,800

  • Europe

    Middle East

    Asia

    Africa

    North America

    Online

    Fee: £3,800

Fees include tuition, course materials and refreshments. Need different dates or a different city? Ask about your preferred date.

Frequently asked questions

What does the IFRS 16 – Leases course cover?

The course covers lease identification, identified assets, right to direct the use, service contract versus lease assessment, embedded leases, right of use assets, lease liability measurement, exemptions, modifications and discount rate determination.

Who is the course designed for?

The course is designed for finance, accounting, financial reporting, contracts, procurement, commercial, asset management, internal audit and operations professionals working within oil and gas organisations.

Does the course focus on rigs and vessels?

Yes. The course uses oil and gas scenarios involving drilling rigs, offshore vessels, marine equipment and operational arrangements to connect IFRS 16 requirements with practical corporate contracts.

How is the course delivered?

Institute For Oil & Gas Training uses corporate case studies, contract analysis exercises, measurement simulations, group discussions, embedded lease workshops and practical rig and vessel scenarios.

What certificate is provided after completion?

Attendees receive a Certificate of Completion from Institute For Oil & Gas Training upon finishing the course, subject to the required attendance throughout the scheduled programme.

Next: 05 Oct 2026

4 dates available

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