Impact of IPSAS 43 on lease accounting
| dc.contributor.author | Vardiashvili, Mariam | |
| dc.date.accessioned | 2026-02-11T11:09:37Z | |
| dc.date.available | 2026-02-11T11:09:37Z | |
| dc.date.issued | 2024 | |
| dc.description | 1. Maisuradze, M., @ Vardiashvili, M. (2016). LEASE AGREEMENTS FINANCIAL REPORTING ISSUES ACCORDING TO THE INTERNATIONAL STANDARDS; Ecoforum journal., p. 162-166., http://www.ecoforumjournal.ro 2. Sabauri, L., @ Kvatashidze, N.(2020). Some aspects of loan and capital financial instruments; ECONOMICS AND BUSINESS,№1, pp. 108-118 3. Sabauri, L, @ Kvatashidze. N. (2022). Impact of the COVID-19 Pandemic on the Preparation of Financial Statements; Proceedings; 276 -282 4. IPSAS 43, Leases; (2022) https:www.ipsasb.org 5. IPSAS 13 – LEASES; (2022) https://www.ipsasb.org 6. IFRS 16, Leases; 2024; https://www.ifrs.org 7. Concessionary Leases and Right-ofUse Assets In-kind;ED 84 8. https://www.deloitte.com/be/en/services/audit-assurance/research/ipsas-leases.html 9. Exposure Draft (ED) 75 Summary – Leases https://www.asb.co.za/wp-content/uploads/2021/01/- IPSASB-At-A-Glance-ED75. 10. https://www.ipsasb.org/_flysystem/azure-private/publications/files/At-a-Glance-IPSAS-43-Leases. 11. Что известно про новые требования к учету аренды в системе IPSAS?(2022). GAAP.RU 12. Новый порядок учета аренды в IPSAS – на шаг ближе МСФО; (2021). GAAP.RU | |
| dc.description.abstract | Entities of the Public Law carry out the leasing or receipt in lease of property for the purpose of performing functions or generating income. The requirements of IPSAS 13 could not provide comprehensive information on lease-related transactions, as only assets and liabilities generated by financial leases were reflected in a lessee’s financial statement, whereas the share of operating leases is important in such transactions. In order to comply with current lease accounting requirements and IFRS 16, the International Public Sector Accounting Standards Board (IPSASB) has developed IPSAS 43 – Leases, which reforms the concept of Lease Accounting and explains the difference between operating and financial leases for lessees. The new standard does not change the lessors accounting. They continue to report the financial condition of the lease according the IPSAS 13. However, IPSAS 43 provides guidance and clarifications to assist the lessors in assessing the risks and benefits associated with property rights, and includes also specific changes to align with the lessor accounting model, which was reflected in the following articles: Lease Modification, Sublease, Notes. IPSAS 43 has a significant impact on lessee’s reporting. By the standard, the difference between operating and financial lease accounting for the lessee is eliminated, and the right-of-use assets and the lease liability are recognized on all types of leases. IPSAS 43 requires the lessee to recognize virtually all lease contracts in the reporting in order to reflect his right-of-use assets for a specified period and the liability – to make future payments. For the lessee, IPSAS 43 introduces a model of use of the assets that makes difference between the right-of-use assets (controlled by the lessee) and the underlying asset itself (not controlled by the lessee). The lessee, along with the recognition of the asset, must also recognize the liability by the commencement date of the lease term, which will be measured at the present value of the lease payments unpaid at that date. IPSAS 43 makes an exception and exempts the lessee from recognition in the financial statements of a short-term lease or a lease less than 12 months and a low-value lease asset. Lease payments associated with such a lease will be recognized as term expense of the Lessee. The modifications also covered the identification of leases, unification of contracts, preferential leases, etc. The implementation of IPSAS 43 will result in an increase in lease assets and lease liabilities on the lessee’s financial accounts. In addition, depreciation costs for the right-of-use and interest costs for the lease will affect the results of financial activities. Accordingly, various financial indicators will also undergo changes. By introducing new approaches, IPSAS 43 emphasizes the recognition of the right-of-use assets and the lease liabilities. It provides detailed information on lease-related assets and liabilities that helps financial statement users to clearly understand the impact of a lease on an entity's financial position and financial results. | |
| dc.identifier.citation | IX International Scientific Conference: "Challenges of Globalization in Economics and Business", Proceedings , Tbilisi, 2024, pp. 117-123 | |
| dc.identifier.isbn | 978-9941-36-414-3 | |
| dc.identifier.uri | https://dspace.tsu.ge/handle/123456789/2681 | |
| dc.language.iso | other | |
| dc.publisher | Ivane Javakhishvili Tbilisi State University Press | |
| dc.title | Impact of IPSAS 43 on lease accounting | |
| dc.type | Article |