Course description
IPSAS - Accounting for Leases under IPSAS 43
This IPSAS course is available as a face to face event or as a virtual, online training!
This program provides in-depth coverage of lease accounting under IPSAS 43 which replaces IPSAS 13 for periods beginning on or after 1 January 2025 (earlier application is permitted).
IPSAS 43 is aligned with the IASB’s leasing standard, IFRS 16. It completes Phase One of the Board’s project on leases. Phase Two addresses arrangements which are specific to the public sector such as concessionary leases and rights to use assets for no consideration: ED 84 Concessionary Leases and Right-of-Use Assets In-kind, published in January 2023, proposes amendments to IPSAS 43.
The most important changes required by IPSAS 43 relate to lessee accounting. Under the ‘right-of-use model’, leases will be recognised on the lessee’s statement of financial position by recognising a right to use the underlying asset and a liability to make future lease payments. This will bring most existing leases ‘on balance sheet’. Exceptionally, where criteria are met, leases may apply separate recognition exemptions for short-term leases and leases of low value assets: where used, lessees will account for these similarly to operating leases under IPSAS 13.
IPSAS 43 substantially carries forward lessor accounting under IPSAS 13: lessors must continue to distinguish between finance and operating leases. Changes include clarifying how to deal with lease modifications and accounting for subleases.
The new standard contains extensive application guidance and is accompanied by Illustrative Examples which will be referenced on the course.
Using case studies, examples and exercises, our specialist instructors explain and illustrate how to apply the requirements of IPSAS 43.
This program answers questions such as:
- How must arrangements be analysed to determine whether they contain leases?
- How are contracts separated into lease and non-lease components?
- How are leases accounted for in the financial statements of lessees?
- What changes does IPSAS 43 make to accounting by lessors?
- What are the presentation and enhanced disclosure requirements?
- What are the requirements and options for transitioning to the new standard?
Upcoming start dates
Suitability - Who should attend?
This training course is especially suitable for:
- 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, participants 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
CPE credits are available for all courses.
Training Course Content
This course is designed to cover the following key topics:
- 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
- Phase Two of the Leases Project
- Proposals in ED 84 Concessionary Leases and Right-of-Use Assets In-kind
- Options for transitioning to IPSAS 43
Why choose IASeminars
We've been training for 20 years.
50% of our business comes from returning clients.
We offer instructor-led training in international locations, over Zoom or in house.
Expenses
The cost of this training course is £1,050 + VAT for UK events, €1,300 + VAT for events in the EU and £950 +VAT for virtual events.
In-House Training
In addition to the scheduled dates and locations, IASeminars can also run this course as in-house training, to meet the specific requirements of your team. Contact them here to request a customised training solution for your team.