11 December 2020To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IASB EXPOSURE DRAFT ED/2020/4Lease Liability in a Sale and LeasebackComments to be received by 10 March 2021The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute ofCertified Public Accountants (Institute) is seeking comments on the IASB Exposure DraftED/2020/4. The Exposure Draft (ED) is available on the Institute's website:
http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/exposure-drafts/.Sale and leaseback transactions are transactions for which an entity (the seller-lessee)
transfers an asset to another party (the buyer-lessor) and leases back that same asset.IFRS 16 Leases includes requirements for how to account for sale and leasebacktransaction at the time the transaction takes place. However, it does not specify thesubsequent measurement of the lease liability after the date of the transaction.The International Accounting Standards Board proposes to amend IFRS 16 by specifyinghow a seller-lessee subsequently measures the lease liability in a sale and leasebacktransaction, and the method a seller-lessee uses in initially measuring the right-of-useasset and liability arising in such transactions.The proposal in the ED would improve the sale and leaseback requirements already inIFRS 16 by providing greater clarity for seller-lessees, which would help to ensure theStandard is applied consistently to such transactions.The proposal would not change the principles for the sale and leaseback requirements inIFRS 16, or the accounting for leases other than those arising in a sale and leasebacktransaction.The FRSC invites your comments on the Exposure Draft by 10 March 2021 to allow yourcomments to be considered in developing its response to the IASB. Comments should besupported by specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6776E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unlessotherwise requested by the respondent.
Invitation to Comment on IASB Exposure Draft ED/2020/4 Lease Liability in a Sale and Leaseback
下载原件11 December 2020To:
Members of the Hong Kong Institute of CPAsAll other interested partiesINVITATION TO COMMENT ON IASB EXPOSURE DRAFT ED/2020/4Lease Liability in a Sale and LeasebackComments to be received by 10 March 2021The Financial Reporting Standards Committee (FRSC) of the Hong Kong Institute ofCertified Public Accountants (Institute) is seeking comments on the IASB Exposure DraftED/2020/4. The Exposure Draft (ED) is available on the Institute's website:
http://www.hkicpa.org.hk/en/standards-and-regulations/standards/financial-reporting/exposure-drafts/.Sale and leaseback transactions are transactions for which an entity (the seller-lessee)
transfers an asset to another party (the buyer-lessor) and leases back that same asset.IFRS 16 Leases includes requirements for how to account for sale and leasebacktransaction at the time the transaction takes place. However, it does not specify thesubsequent measurement of the lease liability after the date of the transaction.The International Accounting Standards Board proposes to amend IFRS 16 by specifyinghow a seller-lessee subsequently measures the lease liability in a sale and leasebacktransaction, and the method a seller-lessee uses in initially measuring the right-of-useasset and liability arising in such transactions.The proposal in the ED would improve the sale and leaseback requirements already inIFRS 16 by providing greater clarity for seller-lessees, which would help to ensure theStandard is applied consistently to such transactions.The proposal would not change the principles for the sale and leaseback requirements inIFRS 16, or the accounting for leases other than those arising in a sale and leasebacktransaction.The FRSC invites your comments on the Exposure Draft by 10 March 2021 to allow yourcomments to be considered in developing its response to the IASB. Comments should besupported by specific reasoning and should be submitted in written form.Comments may be sent by mail, fax or e-mail to:
Standard Setting DepartmentHong Kong Institute of Certified Public Accountants37th Floor, Wu Chung House213 Queen’s Road EastWanchai, Hong KongFax number (+852) 2865 6776E-mail: commentletters@hkicpa.org.hkComments will be acknowledged and may be made available for public review unlessotherwise requested by the respondent.