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IFRS® Accounting Standards

Lease Liability in a Sale and Leaseback

Summary

The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IFRS 16 Leases.

The objective of this project is to specify how a seller-lessee should apply the subsequent measurement requirements in IFRS 16 to the lease liability that arises in a sale and leaseback transaction.

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. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, 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.

Refer to the IASB Lease Liability in a Sale and Leaseback project page for more information. 

 

Staff Contact(s)

Grace Flis, CPA, CA Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed in April 2020

  • Approving project

    The IASB added the project to its agenda in 2020

  • Engaging Communities

    The IASB issued its Exposure Draft in November 2020

    The AcSB issued its Exposure Draft in December 2020

  • Deliberating feedback

    The AcSB submitted its response letter to the IASB in March 2021

    The IASB is has deliberated comments on their Exposure Draft

  • Final pronouncement

    The IASB issued the final amendments in September 2022

    The AcSB will ballot the final amendments and complete its endorsement process to incorporate the amendments into Canadian GAAP in Q4 2022

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.