Tuesday, November 1, 2022

MASB issues amendments on sale and leasebank liability

PETALING JAYA: The Malaysian Accounting Standards Board (MASB) yesterday issued Lease Liability in a Sale and Leaseback (Amendments to MFRS 16 Leases).

The amendments are word-for-word Lease Liability in a Sale and Leaseback (Amendments to IFRS 16 Leases) issued by the International Accounting Standards Board (IASB).

MASB said the amendments clarify how companies should subsequently measure the leaseback liability that arises in a sale and leaseback transition. Although MFRS 16 includes requirements on how to account for a sale and leaseback at the date the transaction takes place, it has not specified how to measure the sale and leaseback transaction when reporting after that date.

“Therefore, the amendments add subsequent measurement requirements for the lease liability arising from a sale and leaseback transaction by clarifying that a seller-lessee in a sale and leaseback transaction shall subsequently measure the leaseback liability by applying paragraphs 36 to 46 of MFRS 16. The amendments will not change the accounting for leases other than those arising in a sale and leaseback transaction,” MASB said in a statement.

Amendments to MFRS 16 will apply for annual reporting periods beginning on or after Jan 1, 2024. Earlier application is permitted.



Source: The Sun Daily

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