Accounting for public sector leases – what is the IPSASB doing?

Following the approval of IPSAS 43 on Leases in December 2021, the IPSASB commenced work on the second phase of its leases project – other lease-type arrangements

The second phase of the project commenced in 2021 with the issue of a Request for Information on Concessionary Leases and Other Arrangements Similar to Leases (RFI).  The objective of the RFI was to gather input from stakeholders on the characteristics of other lease-type arrangements that are common in the public sector.  The RFI also requested information on how these arrangements are accounted for in stakeholder specific jurisdictions.

In developing guidance for other public sector lease-type arrangements, the IPSASB will interpret the principles in IPSAS 43 to determine whether additional guidance is needed.  Arrangements from the perspectives of (a) both parties to the arrangements, and (b) the consolidated financial statements and separate financial statements will be analysed. 

At  its March 2022 meeting, the IPSASB approved the project roadmap.  The IPSASB intends to issue an Exposure Draft during December 2022 as the next output for this project.  The finalisation of the guidance is planned for March 2024.  This will enable the completion of the leases project before IPSAS 43 becomes effective on 1 January 2025.

For more information on this project, go to www.ipsasb.org.

Disclaimer

The article has been prepared by the Secretariat of the ASB for information purposes only.  It has not been reviewed, approved, or otherwise acted on by the Board.