IPSASB ED 84

 

Accounting for Concessionary leases

The International Public Sector Accounting Standards Board (IPSASB) has recently published for consultation proposed new accounting requirements for: 

(a) concessionary leases (lease arrangements at below market rates); and  

(b) leases in-kind (lease arrangement with nil consideration).  

This ED follows similar proposals issued by the IPSASB which we received extensive feedback on from New Zealand stakeholders. Our submission to the IPSASB signaled concerns that the benefits of recognising the value of the concession would exceed the cost of determining the estimated market value of the lease.   

While we are not actively seeking feedback on this exposure draft you are welcome to send your feedback to accounting@xrb.govt.nz. Any feedback you provide to us on the ED will be taken into consideration as part of our ongoing deliberations and development of submissions to the IPSASB.  

You can also make a submission directly to the IPSASB here. 

Submissions to the IPSASB closed 17 May 2023 

Accessing the Consultation Document

pdf IPSASB ED 84 – Accounting for Concessionary leases 389 KB

XRB submission  

Our submission will reiterate feedback previously received from New Zealand stakeholders and we will continue to seek to influence IPSASB developments.  Considerations about whether a New Zealand specific project on concessionary leases is required will be worked through by the NZASB.

If, in the future new accounting requirements for concessionary leases or leases in-kind are proposed for PBEs in New Zealand, any such proposals will be issued for public consultation by the XRB.

 

Consultations