IFRS® Standards

Lease Incentives (Amendment to Illustrative Example 13 accompanying IFRS 16)

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) annual improvements 2018-2020 cycle, to produce a collection of unrelated minor amendments to IFRS® Standards.

Illustrative Example 13 accompanying IFRS 16 Leases, creates a potential for confusion because of how the requirements for lease incentives are illustrated.

The objective of this improvement is to remove the potential for confusion by amending Illustrative Example 13, to remove the illustration of the reimbursement of leasehold improvements by the lessor.

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB, and issuing the AcSB’s own exposure draft on each IASB proposal. After considering the responses to the AcSB’s exposure draft and the relevance of the IASB’s proposals to the Canadian market, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.

Staff Contact(s)

Jayshal Rajendra Daya, CPA, CA

Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to May 2018.

  • Approving project

    In May 2018, the IASB tentatively decided to propose the amendment to IFRS 16 as part of the next Annual Improvements Cycle.

  • Consulting stakeholders
  • Deliberating feedback
  • Final pronouncement


April 25, 2019 AcSB Decision Summary – April 9, 2019

The AcSB discussed the draft response letter to the International Accounting Standard Board’s (IASB) Exposure Draft “Onerous Contracts – Cost of Fulfilling a Contract .” The Board directed the staff to make amendments based on its comments. The Board’s final response letter will be sent to the IASB by the April 15, 2019, deadline.

April 18, 2019 AASB Decision Summary – April 8, 2019 Conference Call

The AASB discussed draft guidance to assist practitioners performing service and organization controls engagements who are required to report under both Canadian and U.S. standards. The guidance addresses differences between each jurisdiction’s overarching attestation standards.

April 18, 2019 AASB Decision Summary – April 8, 2019 Conference Call

The AASB discussed key issues stakeholders raised related to the Exposure Draft, “Compilation Engagements,” including:

  • engagement acceptance and continuance; and
  • work effort and documentation.

The Board will continue to discuss these issues at a future meeting.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal ballot process.