The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) annual improvements 2018-2020 cycle, to produce a collection of unrelated minor amendments to IFRS® Standards.
Illustrative Example 13 accompanying IFRS 16 Leases, creates a potential for confusion because of how the requirements for lease incentives are illustrated.
The objective of this improvement is to remove the potential for confusion by amending Illustrative Example 13, to remove the illustration of the reimbursement of leasehold improvements by the lessor.
The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB, and issuing the AcSB’s own exposure draft on each IASB proposal. After considering the responses to the AcSB’s exposure draft and the relevance of the IASB’s proposals to the Canadian market, the AcSB expects that the amendments will be incorporated into Canadian GAAP in accordance with the AcSB’s strategy of adopting IFRS Standards for publicly accountable enterprises.