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Section 3065 - Leases

Effective date:

January 1, 2011 except for subsequent amendments

Published by the AcSB:

December 2009


Reach out to our Section 3065 Specialist

Nick Capanna


This Section establishes standards for the accounting for lease transactions from the perspective of both the lessee and the lessor.  From the lessee's perspective, the lessee classifies a lease as either capital or operating.  A capital lease is one in which the lessor transfers substantially all of the benefits and risks of ownership to the lessee, and gives rise to asset and liability recognition by the lessee, and a receivable by the lessor.  An operating lease is one in which the lessor retains substantially all of the benefits and risks of ownership and therefore results in expense recognition by the lessee, with the asset remaining recognized by the lessor.  From the lessor's perspective, it classifies a lease as direct financing (which gives rise to finance income over the lease term), sales type (which gives rise to profit or loss on the sale of the product at the inception of the lease and finance income), or operating lease.

History of Section 3065




December 2009

Part II of the CPA Canada Handbook issued

Effective for fiscal years beginning on or after January 1, 2011.

October 2015

Annual improvements

Paragraphs 3065.79 and 3065.81, have been amended to require the disclosure of the amount of any impairment loss or reversal of a previously recognized impairment loss. Effective for fiscal years beginning on or after January 1, 2016. Earlier application is permitted.

July 2017

2017 Annual Improvements. Refer to completed project.

Amendments to paragraph 3065.81(a).  Effective for annual financial statements relating to fiscal years beginning on or after January 1, 2018. Earlier application is permitted

November 2020

Accounting for rent concessions as a result of the COVID-19 pandemic. Refer to Completed project.

This Section has been amended to provide optional relief for both lessees and lessors on accounting for lease modifications received or granted as a result of the COVID-19 pandemic. For an enterprise that chooses to apply the relief, changes to the provisions of an existing lease would not be accounted for as a new lease if specific conditions are met. These amendments are effective for fiscal years ending on or after December 31, 2020. Earlier application is permitted, including in financial statements not yet authorized for issue, so that the relief is available for most COVID-19-related lease modifications received or granted in 2020.

Note: The above summary does not include details of consequential amendments made as the result of other projects.


Private Enterprise Advisory Committee Meeting Notes

  • February 2, 2017 - Discussed the responses received on the Exposure Draft, “2017 Annual Improvements to Accounting Standards for Private Enterprises” issued in September 2016.
  • October 6, 2015 - 2016 Annual Improvements: Leases – Disclosure of Carrying Amount of Impaired Operating Lease Receivables
  • October 6, 2015 - Leases: Disclosure of Credit Risk
  • October 6, 2015 - 2016 Annual Improvements: Illustrative Example in Section 3065: Example 1 – Capital Lease and Sales-type Lease
  • October 6, 2015 - 2016 Annual Improvements: Disclosure Requirements in Section 3056 When Fiscal Periods Are Not Coterminous

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.