Lease Liability in a Sale and Leaseback – International Accounting Standards Board
At its meeting on February 21-24, 2022, the IASB discussed its amendments to IFRS 16 to add subsequent measurement requirements for the lease liability arising from a sale and leaseback transaction. The IASB tentatively decided to: (i) require entities to apply the amendments retrospectively in accordance with IAS 8; and (ii) provide no specific transition exemption for first-time adopters. The IASB also tentatively decided to require entities to apply the amendments for annual reporting periods beginning on or after January 1, 2024, with earlier application permitted. With respect to due process, the IASB decided that the amendments do not require re-exposure. One Board member indicated an intention to dissent from the issue of the amendments. All 12 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the balloting process for the amendments.
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