The IASB issued Lease Liability in a Sale and Leaseback, which amends IFRS 16, Leases. The amendments add to requirements explaining how a company accounts for a sale and leaseback after the date of the transaction.
IFRS 16 includes requirements on how to account for a sale and leaseback at the transaction date. However, IFRS 16 had not specified how to measure the transaction when reporting after that date. The amendments issued today add to the sale and leaseback requirements in IFRS 16, thereby supporting the consistent application of the standard.
These amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction.
The IASB said in a news release that the amendment to IFRS 16 would improve the standard's sale and leaseback requirements "by providing greater clarity for the company selling and leasing back an asset both at the date of transaction and subsequently."
The updated standard can be found through IFRS published documents. An IFRS digital subscription is needed to access the content.
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