The study examined how the adoption of IFRS 16 influences the accounting treatment of leases in digital financial statements compared to the previous IAS 17 standard. The research examined how IFRS 16 changes lease contract classification between financial and operating leases and its subsequent impact on presenting assets and liabilities in the financial position statement. The research evaluated how IFRS 16 affected both the income statement and the statement of cash flows. The analysis investigated the accounting aspects of this standard by demonstrating leased assets as assets and lease payments as liabilities. IFRS 16 has brought about a major transformation in lease accounting by requiring all leases to be treated as finance leases thus altering financial presentation methods for both lessees and lessors. The results showed that this change may inflate the value of assets and liabilities in large companies that heavily rely on operating leases. Furthermore, the study indicated that the application of IFRS 16 requires a change in the way profits and financial ratios are calculated, potentially leading to challenges in analyzing the financial performance of companies. The study concluded that a deeper understanding and precise application of the standard are needed by both accountants and investors to ensure accuracy and transparency in financial reporting.