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SIC-15 — Operating Leases – Incentives

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:

July 1999

Included in Part I of CPA Canada Handbook:

January 2010


SIC-15 Operating Leases - Incentives clarifies the recognition of incentives related to operating leases by both the lessee and lessor. The Interpretation indicates that lease incentives (such as rent-free periods or contributions by the lessor to the lessee's relocation costs) should be considered an integral part of the consideration for the use of the leased asset. As they are an integral part of the net consideration agreed for the use of the leased asset, incentives should be recognized by both the lessor and the lessee over the lease term, with each party using a single amortization method applied to the net consideration.

History of SIC 15

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




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 permitted.

January 2010

August 1, 2018

SIC-15 withdrawn

SIC-15, Operating Leases – Incentives, has been superseded by IFRS 16. Accordingly, SIC-15 has been withdrawn.

August 2018


  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.

Related Standards

Amendments under consideration

  • None

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.