SOCPA Provides Remarks on the Preliminary Decision of the International Standards Interpretations Co

SOCPA shared its view on the preliminary decision of IFRS Interpretations Committee on how to measure the right-of-use asset and lease liabilities sale and leaseback transactions with variable payments.

 

It is the opinion of SOCPA that Committee's preliminary decision may conflict the principles established in the standard. It may also conflict with standard's position on the measurement of the right-of-use asset and lease liabilities. SOCPA also submitted a proposal to amend paragraph 100 of the standard so that it would be consistent with the principles established in the standard itself and other standards, in particular with regard to recognizing any loss that arises on a sale and leaseback transaction.

SOCPA detailed remarks can be found by clicking here.