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Proposed Ipsas On Leases Will It Be Business As Usual For Lessors

Accounting Standards BoardRef: https://www.asb.co.za/proposed-ipsas-on-leases-will-it-be-business-as-usual-for-lessors/

Official source

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 discussing proposed IPSAS changes for lease accounting. It explains that the proposed IPSAS on leases is substantially aligned with IFRS 16 and that lessor accounting will remain largely the same (finance vs operating leases), but will be affected by changes to the definition/application of leases, subleases, and sale-and-leaseback transactions. It also notes that the ASB will consider the impact of these amendments when the IPSASB finalises them in 2022 and invites readers to share views. The post includes a disclaimer that it was prepared by the ASB Secretariat for information purposes only and not reviewed or approved by the Board.

What this document offers

Read out of this document by Govermate's AI, in its own words. Each one quotes the line it came from — confirm on the official source before acting.

Public consultation inputOngoing

Share views on the proposed IPSAS and Request for Information

Readers are invited to share their views on the proposed IPSAS and the related Request for Information.

Who it is for: Readers and interested stakeholders
How to act on it: Share views on the proposed IPSAS and Request for Information; the document does not state a specific submission method.

Show the line this came from

invites readers to share views

Facts

Reference

https://www.asb.co.za/proposed-ipsas-on-leases-will-it-be-business-as-usual-for-lessors/

Key Takeaways

Topic: Proposed IPSAS on leases and impact on lessors
Date posted: March 15, 2021
Reference: IPSASB revised proposals for leases published in January 2021
Alignment: substantially aligned with IFRS 16 (unlike Exposure Draft 64 issued in 2018)
Lessor classification: continue to classify leases as finance or operating leases
New guidance impacts lessors: definition/application of lease, sublease, and sale-and-leasebacks
Sublease classification: intermediate lessor assesses finance vs operating based on right-of-use asset from head lease
Short-term head lease + recognition exemption: sublease must be classified as operating lease
Sale and leaseback: both seller-lessee and buyer-lessor must determine whether transfer qualifies as a sale
Seller-lessee measurement: right-of-use asset and gain/loss limited to rights retained/transferred
ASB consideration: ASB will consider impact when IPSASB finalises in 2022
Call for input: readers invited to share views; link provided to proposed IPSAS and Request for Information
Accounting Standards Board (ASB)
IPSASB (International Public Sector Accounting Standards Board)
IFRS 16
Julianne Vissie
ASB Secretariat
Board of the ASB