IPSASB publishes new proposals for leases

The IPSASB has published revised proposals for leases in the public sector. The proposals change the accounting requirements for lessees. Under the new proposals for lessees, there are no longer operating and finance leases. Lessees recognise assets for their rights to use leased assets over the duration of the arrangement along with corresponding obligations to make payments to the lessor.

The accounting principles applied by lessors are largely unchanged, i.e. the accounting is based on whether the arrangement is a finance or operating lease.

The proposed IPSAS is substantially aligned with IFRS 16 on Leases. Due to the alignment with IFRS 16, no specific guidance has been provided on public sector specific issues such as concessionary leases. The IPSASB issued a Request for Information (RFI) to accompany the proposed IPSAS to solicit views on the types of arrangements that exist and how they might need to be addressed. These issues will be addressed in a second phase of the project.

The Secretariat of the ASB will arrange sessions to discuss the proposed IPSAS and RFI with stakeholders locally. The feedback received at these sessions will be used to develop a response to the IPSASB. Keep up to date with developments on this project and outreach events by signing up to the ASB’s Newsletter or following the ASB on social media.

Access the proposed IPSAS and RFI by following this link.