IPSAS 43: Accounting for leases

This program offers an in-depth exploration of lease accounting under IPSAS 43, which supersedes IPSAS 13 starting from January 1, 2025.

IPSAS 43 is aligned with IFRS 16, the leasing standard set by the IASB, and addresses public sector-specific arrangements such as concessionary leases and rights to use assets for no consideration.

Key Changes and Highlights of IPSAS 43

Lessee Accounting: The Right-of-Use Model

• Leases will be recognized on the lessee’s statement of financial position.
• Lessees will account for a right to use the underlying asset and a liability for future lease payments.
• This approach brings most leases 'on balance sheet.'
• There are specific exemptions for short-term leases and low-value assets, treated similarly to operating leases under IPSAS 13.

Lessor Accounting: Continuity with IPSAS 13

• Lessor accounting largely follows IPSAS 13.
• Lessors must differentiate between finance and operating leases.
• IPSAS 43 provides clarity on handling lease modifications and subleases.

Application and Guidance

IPSAS 43 includes comprehensive application guidance and illustrative examples. Our program uses case studies, examples, and exercises to demonstrate the application of IPSAS 43's requirements, facilitated by our expert instructors.

Essential Questions Answered

• Lease Identification: How to analyze arrangements to determine the presence of leases.
• Contract Separation: Methods for dividing contracts into lease and non-lease components.
• Lessee Accounting: Accounting practices for lessees' financial statements.
• Lessor Changes: Updates to lessor accounting under IPSAS 43.
• Presentation and Disclosure: Enhanced requirements for presentation and disclosure.
• Transitioning: Options and requirements for transitioning to IPSAS 43.

By addressing these key areas, our program ensures a thorough understanding of the new lease accounting standard, equipping participants with the knowledge to implement IPSAS 43 effectively.