UKEB publishes response to IASB ED Lease Liability in a Sale and Leaseback

Released 09 April 2021

The UKEB secretariat has published its response to the IASB ED/2020/4 Lease Liability in a Sale and Leaseback (Proposed Amendment to IFRS 16).

The UKEB secretariat welcomed the proposals, which provide guidance on an area not covered by the existing standard. This should reduce any diversity in practice leading to improved consistency and comparability of financial statements. However concern was expressed regarding the treatment of variable lease payments, where a new definition inconsistent with that in IFRS 16 had been created. The UKEB secretariat proposed two potential solutions to the IASB to avoid the inconsistency in definition, with the aim of avoiding inconsistency in financial reporting, while still ensuring any gain or loss on sale was recognised in a manner reflecting the economic substance of the transaction.

The UKEB response can be found at

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