BLM10045 - Lease accounting: accounting standards: significance of IAS 39 and IFRS 9
This manual is being updated to reflect FRS 102 (2024 amendments). For guidance on the tax treatment of accounts prepared under IFRS 16 or the revised FRS 102, please refer to pages within the BLM50000 chapter.
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