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IPSASB Issues Final Pronouncement on Concessionary Leases and Other Arrangements Conveying Rights Over Assets

Oct 21, 2024 | English

The International Public Sector Accounting Standards Board® (IPSASB®), developer of IPSAS®, international accrual-based accounting standards for use by governments and other public sector entities around the world, has today issued Concessionary Leases and Other Arrangements Conveying Rights over Assets (Amendments to IPSAS 43, IPSAS 47, and IPSAS 48). 

The new guidance addresses public sector issues specific to concessionary leases (i.e. leases at below-market terms) and other arrangements conveying rights over assets that are not leases that are prevalent in the public sector. It reflects feedback from constituents to the Request for Information, Concessionary Leases and Other Arrangements Similar to Leases, and build on the principles in IPSAS 43, Leases, IPSAS 47, Revenue, and IPSAS 48, Transfer Expenses, and thus complements those Standards.

Concessionary Leases and Other Arrangements Conveying Rights over Assets will enhance accountability and decision-making in the public sector by providing new guidance to make the financial reporting of these specific arrangements more consistent and transparent,” said IPSASB Chair Ian Carruthers. “This final pronouncement completes the Leases project and equips public sector entities with a complete set of guidance to address their broad-ranging needs.”

The amendments to IPSAS 43 and IPSAS 47 have an effective date of January 1, 2027. Earlier application is permitted. Access the Standard.

 

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting StandardsTM (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and the World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.