In November 2020, the International Accounting Standards Board (Board) published the Exposure Draft Lease Liability in a Sale and Leaseback. The Exposure Draft specifies the method a seller-lessee uses in initially measuring the right-of-use asset and lease liability arising in a sale and leaseback transaction and how the seller-lessee subsequently measures that liability.
The deadline for submitting comments on the Exposure Draft is 29 March 2021. The Board will consider feedback on the Exposure Draft before developing its final requirements.
The Board met on 22 September 2020 to discuss a sweep issue identified during the balloting process for the proposed amendment to IFRS 16 Leases. The sweep issue relates to the Board's tentative decisions on how a seller-lessee applies IFRS 16 to measure the right-of-use asset and lease liability that arise in a sale and leaseback transaction.
The Board tentatively decided to:
Twelve of 13 Board members agreed with these decisions. One Board member was absent.