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

    AcSB Exposure Draft issued in May 2019

    IASB Exposure Draft issued in May 2019

    The AcSB consulted with our IFRS® Discussion Group in June 2019

  • Deliberating feedback

    The IASB and the AcSB are deliberating comments on their Exposure Drafts

  • Final pronouncement

Read the AcSB’s response letter to the IASB’s Exposure Draft, “Annual Improvements to IFRS® Standards 2018-2020.”

Meeting & event summaries


News


May 31, 2019

News

IASB® Exposure Draft – Annual Improvements to IFRS® Standards 2018-2020

The IASB has issued an Exposure Draft proposing amendments to IFRS Standards as part of its Annual Improvements process. Canadian stakeholders are encouraged to submit their comments to the IASB by August 20, 2019.

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.