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SIC-27 — Evaluating the Substance of Transactions in the Legal Form of a Lease

Effective date:

First effective as Canadian GAAP under Part I for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011.  Earlier application of Part I was permitted

Published by the IASB:

December 2001

Included in Part I of CPA Canada Handbook:

January 2010

Overview

SIC-27 Evaluating the Substance of Transactions in the Legal Form of a Lease addresses the considerations in evaluating the substance of transactions in the legal form of a lease.  Arrangements between an enterprise and an investor should reflect the substance of the arrangement and all aspects of the arrangement should be evaluated to determine its substance, with weight given to those aspects and implications that have an economic effect. In this respect, SIC-27 includes a list of indicators that individually demonstrate that an arrangement may not, in substance, involve a lease under IAS 17 Leases.

History of SIC 27

The following table shows the history of this standard subsequent to the adoption of IFRS in Canada. 

Date1

Development

Comments

Included in Part I of the CPA Canada Handbook2

January 2010

Part I of the CPA Canada Handbook issued

Effective for interim and annual financial statements relating to fiscal years beginning on or after January 1, 2011. Earlier application is permitted.

January 2010

August 1, 2018

SIC-27 withdrawn

SIC-27, Evaluating the Substance of Transactions in the Legal Form of a Lease, has been superseded by IFRS 16. Accordingly, SIC-27 has been withdrawn.

August 2018

Notes

  1. For further details of relevant developments prior to this, please refer to our Deloitte Global section.
  2. Newly issued, amended or revised IFRSs are part of Canadian GAAP only after they are approved by the Accounting Standards Board in accordance with its due process.
The above summary does not include details of consequential amendments made as the result of other projects.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.