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In November 2020, the International Accounting Standards Board (IASB) published the Exposure Draft Lease Liability in a Sale and Leaseback.

At its December 2021 meeting, the IASB tentatively decided to proceed with the proposed amendments published in the Exposure Draft, with some changes to the proposals.

At its February 2022 meeting, the IASB tentatively decided on transition requirements and effective date. The IASB also decided that the amendments do not require re-exposure.

IASB® Update February 2022

The IASB discussed its amendments to IFRS 16 Leases to add subsequent measurement requirements for the lease liability arising from a sale and leaseback transaction.

Transition

The IASB tentatively decided to:

  1. require entities to apply the amendments retrospectively in accordance with IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; and
  2. provide no specific transition exemption for first-time adopters.

Eleven of 12 IASB members agreed with these decisions.

Effective date

The IASB tentatively decided to require entities to apply the amendments for annual reporting periods beginning on or after 1 January 2024, with earlier application permitted.

Eleven of 12 IASB members agreed with these decisions.

Due process

The IASB decided that the amendments do not require re-exposure.

Eleven of 12 IASB members agreed with these decisions.

One Board member indicated an intention to dissent from the issue of the amendments.

All 12 IASB members confirmed they were satisfied the IASB has complied with the applicable due process requirements and has undertaken sufficient consultation and analysis to begin the balloting process for the amendments.

Next milestone

IFRS Amendment