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IFRIC 4 Determining whether an Arrangement Contains a Lease

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Superseded by IFRS 16 Leases.

IFRIC 4 clarifies that an entity accounts for arrangements that meet specific criteria as leases even though those arrangements do not take the legal form of a lease. Examples include some outsourcing arrangements, telecommunication contracts that provide rights to capacity, and take-or-pay and similar contracts in which purchasers must make specified payments regardless of whether they take delivery of the contracted products or services.

Standard history

In December 2004 the International Accounting Standards Board issued IFRIC 4 Determining whether an Arrangement contains a Lease. It was developed by the Interpretations Committee. 

Other Standards have made minor consequential amendments to IFRIC 4, including IFRS 13 Fair Value Measurement (issued May 2011).

IFRIC 4 was superseded by IFRS 16 Leases.