ANNEX
Lease Liability in a Sale and Leaseback
Amendments to IFRS 16
Amendments to IFRS 16 Leases
Paragraphs 102A, C1D and C20E are added and paragraph C2 is amended. A new heading is added before paragraph C20E.
SALE AND LEASEBACK TRANSACTIONS
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Assessing whether the transfer of the asset is a sale
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Transfer of the asset is a sale
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102A | After the commencement date, the seller-lessee shall apply paragraphs 29–35 to the right-of-use asset arising from the leaseback and paragraphs 36–46 to the lease liability arising from the leaseback. In applying paragraphs 36–46, the seller-lessee shall determine ‘lease payments’ or ‘revised lease payments’ in a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. Applying the requirements in this paragraph does not prevent the seller-lessee from recognising in profit or loss any gain or loss relating to the partial or full termination of a lease as required by paragraph 46(a).... |