Document ID: chunk:federal_register_of_legislation:F2022L01500:body:0:p2
Version: federal_register_of_legislation:F2022L01500
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Character Range: 2979–5856

from a leaseback in a way that does not recognise any amount of the gain or loss related to the right of use it retains.

Application date
This Standard applies to annual periods beginning on or after 1 January 2024.  Earlier application is permitted.

Accounting Standard AASB 2022-5
The Australian Accounting Standards Board makes Accounting Standard AASB 2022-5 Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback under section 334 of the Corporations Act 2001.
                           Dr Keith Kendall
  Dated 10 November 2022   Chair – AASB

Accounting Standard AASB 2022-5
Amendments to Australian Accounting Standards – Lease Liability in a Sale and Leaseback

Objective
This Standard amends AASB 16 Leases (February 2016) as a consequence of the issuance of International Financial Reporting Standard Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) by the International Accounting Standards Board in September 2022.

Application
The amendments set out in this Standard apply to entities and financial statements in accordance with the application of AASB 16 set out in AASB 1057 Application of Australian Accounting Standards.
This Standard applies to annual periods beginning on or after 1 January 2024.
This Standard may be applied to annual periods beginning before 1 January 2024.  When an entity applies this Standard to such an annual period, it shall disclose that fact.
This Standard uses underlining, striking out and other typographical material to identify the amendments to AASB 16, in order to make the amendments more understandable.  However, the amendments made by this Standard do not include that underlining, striking out or other typographical material.  Ellipses (…) are used to help provide the context within which amendments are made and also to indicate text that is not amended.

Amendments to AASB 16 Leases
Paragraphs 102A, C1D and C20E are added and paragraph C2 is amended.  A new heading is added before paragraph C20E.  New text is underlined, and deleted text is struck through.

Sale and leaseback transactions
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Assessing whether the transfer of the asset is a sale
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Transfer of the asset is a sale
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102A After the commencement date, the seller-lessee shall apply paragraphs 29–35 to the right-of-use asset arising from the leaseback and paragraphs 36–46 to the lease liability arising from the leaseback. In applying paragraphs 36–46, the seller-lessee shall determine 'lease payments' or 'revised lease payments' in a way that the seller-lessee would not recognise any amount of the gain or loss that relates to the right of use retained by the seller-lessee. Applying the requirements in this paragraph does not prevent the seller-lessee from recognising in profit or loss any gain or loss relating to the partial or full termination of a lease as required by