Lease represents centuries-old method of doing business which adjusted to each era of mankind and in each represented a business through which was possible to get goods by paying some kind of fees. By interducing different rules and procedures in international business, modern age has ensured safety for suppliers, lessor and lessee. There are two types of lease: finance lease and operating lease. The main difference is that in finance lease, lessee becomes the owner of the lease object after he settles all his debts to lessor. On the other hand, in operating lease, lessee never becomes the lease object owner. IFRS 16 – Leases (International Financial Reporting Standards 16) is a standard which is in use by accounting records of lease. It is in use since 01.01.2019 and it introduced changes in recording operating lease by the lessee. The work explains the concept of leasing and ways of finance accounting entries by a lessor and a lessee on the example taken from the practice of the business system headquarters in BIH – so, in accordance with the legal provisions and rules applicable to that country