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IFRS® Accounting Standards

AcSB Exposure Draft – Lease Liability in a Sale and Leaseback 

Summary

The Accounting Standards Board (AcSB) proposes, subject to comments received following exposure, to incorporate into Part I of the CPA Canada Handbook – Accounting, amendments to IFRS 16 Leases.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Phone number  +1 416 204 3270
Email address  [email protected]

Thank you for your interest in the AcSB Exposure Draft – Lease Liability in a Sale and Leaseback.

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AcSB Exposure Draft – Lease Liability in a Sale and Leaseback

Support Materials

Lease Liability in a Sale and Leaseback

Background

The International Accounting Standards Board (IASB) recently issued the Exposure Draft, “Lease Liability in a Sale and Leaseback (Proposed amendment to IFRS 16).” 

The IASB proposes to amend IFRS 16 to specify the method a seller-lessee uses in initially measuring the right-of-use asset and liability arising in a sale and leaseback transaction and how the seller-lessee subsequently measures that liability. The proposed amendments are intended to improve the requirements for sale and leaseback transactions in IFRS 16. The proposal would change neither the principles for the sale and leaseback requirements in IFRS 16 nor the accounting for leases unrelated to sale and leaseback transactions. 

The IASB’s Exposure Draft includes two Illustrative Examples and a Basis for Conclusions that are not part of this AcSB’s Exposure Draft. This material may provide useful information to stakeholders.