Skip To Content | Contact Us | About AASB | Links

AASB on Twitter AASB on LinkedIn

Breadcrumbs

Stuff

News

19 Dec. 2019

Amendments to not-for-profit lessees’ right-of-use assets arising under concessionary leases

AASB 16 Leases and AASB 1049 Whole of Government and General Government Sector Financial Reporting were amended in respect of not-for-profit lessees’ right-of-use assets arising under concessionary leases to:

(a) specify right-of-use (ROU) assets arising under concessionary leases can be treated as a separate class of ROU assets to ROU assets arising under other leases for the purposes of AASB 16; and
(b) extend the initial-measurement temporary relief to provide a temporary option for the Whole of Government and the General Government Sector not to measure ROU assets arising under concessionary leases at fair value in subsequent measurement.

Concessionary leases in this context are leases that have significantly below-market terms and conditions principally to enable the entity to further its objectives, as referred to in AASB 16 and AASB 1058 Income of Not-for-Profit Entities.

The amendments are set out in AASB 2019-8 Amendments to Australian Accounting Standards – Class of Right-of-Use Assets arising under Concessionary Leases, which is effective for annual periods beginning on or after 1 January 2019.

AASB staff’s responses to submissions on the Fatal-Flaw Draft of Amendments to Australian Accounting StandardsClass of Right-of-Use Assets arising under Concessionary Leases is available on the website.