IPSAS 43 Leases contains a model that is aligned with IFRS 16 Leases for lease accounting in the public sector. For lessees, IPSAS 43 introduces a right-of-use model that will replace the risks and rewards incidental to ownership model in IPSAS 13 Leases. For lessors, IPSAS 43 substantially carries forward the risks and rewards incidental to ownership model in IPSAS 13.

IPSAS 43 has an effective date of 1 January 2025 as a three-year period to apply IPSAS 43 provides public sector entities time to prepare for the new requirements and allows for learning to be drawn from the private sector experience in applying IFRS 16.

The publication of IPSAS 43 completes the IPSASB’s first phase of work on leases. The IPSASB will continue its work by considering additional public sector specific issues in a separate project on other lease-type arrangements.

The following additional information is available on the IPSASB website:

• Press release
• Access to the new standard, introductory webinar and At a Glance summary