IASB proposes amendment to IFRS 16 to improve accounting for sale and leaseback transactions

The IASB has proposed amendments to IFRS 16 regarding lease liability in a sale and leaseback transaction (ED/2020/4) (further information).

The amendments specifies how a seller/lessee measures the lease liability in a sale and leaseback transaction in accordance with the subsequent measurement requirements of IFRS 16 (paragraphs 36-38).

In addition to the clarification, two illustrative examples to IFRS 16 are also proposed.

The Exposure Draft is open for public comment until 29 March 2021.