IPSASB issues Exposure Draft proposing new requirements for lease accounting

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01 Feb, 2018

The International Public Sector Accounting Standards Board (IPSASB) has published Exposure Draft 64, Leases (“the ED”). The ED proposes new requirements for lease accounting covering both lessors and lessees to replace IPSAS 13, Leases.

The ED proposes a single right-of-use model for lease accounting that will replace the risk and rewards incidental to ownership model in IPSAS 13.

For lessees, the ED proposes to adopt the right-of-use model in IFRS 16 Leases.

However, the ED proposes a departure from IFRS 16's requirements for lessor accounting. As converging with the requirements for lessors under IFRS 16 would “give rise to a number of public sector specific issues”, the IPSASB also proposes a right-of-use model for lessor accounting specifically designed for public sector financial reporting.

Proposals for new public sector specific guidance on concessionary leases for both lessors and lessees are also contained in the ED.

Comments are requested until 30 June 2018.

A press release and the full exposure draft are available on the IPSASB website.

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