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IAS 17 – Determining whether an arrangement contains a lease


Arrangements have developed that do not take the legal form of a lease but convey rights to use items for agreed periods of time in return for payment or a series of payments.  These arrangements share many features of a lease because a lease is defined in IAS 17 Leases as "an agreement whereby the lessor conveys to the lessee in return for a payment or series of payment the right to use an asset for an agreed period of time".

Therefore, this IFRIC project considered whether certain rights to use assets (for instance, in outsourcing arrangements) should be accounted for as assets under a lease.


Current status of the project

This project has been completed. IFRIC 4 Determining Whether an Arrangement Contains a Lease was issued on 2 December 2004.


Project milestones

15 January 2004 Draft Interpretation D3 Determining Whether an Arrangement Contains a Lease published Comment deadline 19 March 2004
2 December 2004 IFRIC 4 Determining Whether an Arrangement Contains a Lease issued Effective for annual periods beginning on or after 1 January 2006

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.