BLM10045 - Lease accounting: accounting standards: significance of IAS 39 and IFRS 9

For those entities adopting IFRS or FRS101, occasionally IAS 39 Financial instruments: Recognition and measurement may be relevant to lease accounting. For example

• a lease may be accounted for under IAS 39 as a financial transaction, by virtue of it not being treated as a lease under SIC 27. IAS 18 may also then be a relevant standard.
• the derecognition principles of IAS 39 apply to lease receivables and payables and the impairment provisions of this standard apply to lease receivables.

For accounting periods beginning on or after 1 January 2018, only IFRS9 will be relevant to derecognition of lease receivables and payables, and impairment of lease receivables