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Is The Ipsasbs New Approach To Align With Ifrs 16 Appropriate

Accounting Standards BoardRef: https://www.asb.co.za/is-the-ipsasbs-new-approach-to-align-with-ifrs-16-appropriate/

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Source domain: asb.co.za

Collected on 13 July 2026

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What this means

This document is a blog post on the Accounting Standards Board (ASB) website titled “Is the IPSASB’s new approach to align with IFRS 16 appropriate?” It explains that in January 2021 the IPSASB published revised proposals for leases that are substantially aligned with IFRS 16, replacing an earlier approach in Exposure Draft 64 (ED 64) from 2018. It describes the shift to a “right-of-use” model for lessees, while lessors continue using the “risk and reward incidental to ownership” model, and it outlines why the IPSASB decided to align fully with IFRS 16 rather than diverge. The post also notes that an RFI on concessionary leases was issued alongside the proposed IPSAS and that the ASB will consider the impact of final international amendments when the IPSASB finalises them in 2022.

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Facts

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City of Tshwane, Gauteng

Reference

https://www.asb.co.za/is-the-ipsasbs-new-approach-to-align-with-ifrs-16-appropriate/

Key Takeaways

January 2021: IPSASB published revised proposals for leases
Revised proposals are substantially aligned with IFRS 16 (unlike ED 64 issued in 2018)
IFRS 16 effective date: 1 January 2019
Lessees: apply “right-of-use” model
Lessors: continue “risk and reward incidental to ownership” model
Concerns cited: operating leases not reflected on lessee balance sheets; inadequate information on lessor credit risk and asset risk
IPSASB decision: do not continue ED 64’s departure from IFRS 16; align with IFRS 16 altogether
ASB policy: maintain alignment with IPSASB standards when consistent with mandate and objectives
ASB will consider impact when IPSASB finalises amendments in 2022
RFI issued alongside proposed IPSAS: “Concessionary Leases and Other Arrangements Similar to Leases”
Contact details shown: 40 Church Square, Pretoria 0002; +27 11 697 0660; info@asb.co.za
Accounting Standards Board (ASB)
IPSASB
IFRS 16
Exposure Draft 64 (ED 64), Leases
International Accounting Standard (IAS) 17, Leases
Julianne Vissie