IPSASB Issues New Standard on Leases
The International Public Sector Accounting Standards Board (IPSASB) recently issued International Public Sector Accounting Standard (IPSAS) 43, Leases.
IPSAS 43 is based on International Financial Reporting Standard (IFRS) 16, Leases, which was developed by the International Accounting Standards Board (IASB). For lessees, IPSAS 43 introduces a right-of-use model that replaces the risks and rewards incidental to ownership model in IPSAS 13, Leases. For lessors, IPSAS 43 substantially carries forward the risks and rewards incidental to ownership model in IPSAS 13.
The publication of IPSAS 43 completes the IPSASB’s first phase of work on Leases. The IPSASB says that it will continue its work by considering additional public sector-specific issues in its Other Lease-Type Arrangements project.
IPSAS 43 is effective Jan. 1, 2025. Earlier application is permitted in certain circumstances.
For more information, visit the IPSASB website.