IPSASB issued IPSAS 43, Leases, setting out principles for recognition, measurement, presentation and disclosure of leases to ensure that relevant information is provided.
Follows IPSASB Jan. 2021 proposed rules on leases-related accounting, see #95729.
Summary
PSAS 43 is based on international financial reporting standard (IFRS) 16, Leases, that was developed by IASB for general accounting, developed by IPSASB for public sector.
For lessees, IPSAS 43 now introduces a right-of-use model that effectively replaces the risks and rewards incidental to ownership, as was already shown in IPSAS 13, Leases.
For lessors IPSAS 43 carries forward risks and rewards of ownership, in IPSAS 13.
The new standard supersedes IPSAS 13, issued in 2006, but this earlier standard will remain applicable until IPSAS 43 is applied or becomes effective, whichever is sooner.
Effectiveness
IPSAS 43 is effective from Jan. 1, 2025, with limited earlier application permitted.
