Course description
This VantagePoint Training 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.
Upcoming start dates
Suitability - Who should attend?
- Accountants and public financial management (PFM) officials in finance and reporting teams that prepare IPSAS financial statements
- External and internal auditors of public sector entities that prepare accrual-basis IPSAS financial statements
- Consultants, analysts and academics with interests in public sector financial reporting.
Outcome / Qualification etc.
At the end of this course, attendees will be able to:
- Comply with the new accounting and disclosure requirements for leases
- Analyse contracts to determine whether they contain leases
- Apply the rules for initial and subsequent measurement by lessees and lessors
- Learn the requirements for sale and leaseback transactions
- Plan the transition to IPSAS 43.
Training Course Content
- Leases
- Defining a lease
- Separating a contract into lease and non-lease components
- Recognition exemptions for short-term leases and leases of low value assets
- Determining the lease term
- Lessee Accounting
- Recognition – right-of-use model
- Initial and subsequent measurement
- Lease modifications
- Presentation
- Disclosure
- Lessor Accounting
- Classification as operating or finance leases
- Finance leases - recognition and measurement
- Operating leases - recognition and measurement
- Presentation
- Disclosure
- Sale and Leaseback Transactions
- Assessing whether a transfer is a sale or a financing
- Recognition and measurement by seller-lessees and buyer-lessors
- Public sector specific arrangements
- Concessionary leases
- Rights to use assets for no consideration
- Transitioning to IPSAS 43
Course delivery details
- Group live instruction and illustrative examples
- Review & interpretation of financial information to illustrate key points (from IFRS financial statements as benchmark)
- Interactive participation will be encouraged
- All participants will receive digital copies of the presentation slides, handouts and other course materials.
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