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SIC-15 — Operating Leases – Incentives

Note: SIC-15 will be superseded by IFRS 16 Leases as of 1 January 2019.



  • Issued July 1999  
  • Effective date: Lease terms beginning on or after 1 January 1999 
  • SIC-15 will be superseded by IFRS 16 Leases as of 1 January 2019.

Summary of SIC-15

SIC-15 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. IAS 17.24 and .42 (rev. 1997) require an enterprise to treat incentives as a reduction of lease income or lease expense. As they are an integral part of the net consideration agreed for the use of the leased asset, incentives should be recognised by both the lessor and the lessee over the lease term, with each party using a single amortisation method applied to the net consideration.

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.