Key points

The IASB has issued narrow-scope amendments to the requirements for sale and leaseback transactions in IFRS 16 explaining how a seller-lessee accounts for a sale and leaseback after the date of the transaction. Sale and leaseback transactions where some or all the lease payments are variable lease payments that do not depend on an index or a rate are most likely to be impacted.
What's inside:
  1. What transactions do the amendments apply to?
  2. Do the amendments change lessor accounting?
  1. How does a seller-lessee determine the proportion of the right-of-use asset retained at the sale and leaseback transaction date?
  2. How does a seller-lessee determine the lease liability at the sale and leaseback transaction date?
  3. How does a seller-lessee subsequently measure the right-of-use asset and lease liability in a sale and leaseback transaction?
  4. Does an entity have to estimate expected variable lease payments?
  5. How does the seller-lessee account for a partial or full termination of the leaseback?
  6. How does the seller-lessee measure ‘revised lease payments’ for the leaseback under the amendments, on a remeasurement/modification date?
  1. How is the lease liability presented in the statement of financial position?
  2. Are additional disclosures required in the financial statements?
  1. When are the amendments effective?
  2. How are the amendments applied generally?
  3. How are the amendments applied where an entity applied IFRS 16 in its first set of IFRS financial statements?
  4. Should an entity present a third statement of financial position when adopting the amendments?
List of Illustrative Examples
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