IPSAS 43 is aligned with the IASB’s leasing standard, IFRS 16. It also addresses arrangements which are specific to the public sector, such as concessionary leases and rights to use assets for no consideration. 

The most important changes required by IPSAS 43 relate to lessee accounting. Under the ‘right-of-use model’, leases will be recognised on the lessee’s statement of financial position by recognising a right to use the underlying asset and a liability to make future lease payments. This will bring most existing leases ‘on balance sheet’. Exceptionally, where criteria are met, leases may apply separate recognition exemptions for short-term leases and leases of low-value assets: where used, lessees will account for these similarly to operating leases under IPSAS 13. 

IPSAS 43 substantially carries forward lessor accounting under IPSAS 13: lessors must continue to distinguish between finance and operating leases. Changes include clarifying how to deal with lease modifications and accounting for subleases. 

The new standard contains extensive application guidance and is accompanied by illustrative examples, which will be referenced in the course. Using case studies, examples and exercises, our specialist instructors explain and illustrate how to apply the requirements of IPSAS 43. 

This program answers questions such as: 

• How must arrangements be analysed to determine whether they contain leases? 

• How are contracts separated into lease and non-lease components? 

• How are leases accounted for in the financial statements of lessees? 

• What changes does IPSAS 43 make to accounting by lessors? 

• What are the presentation and enhanced disclosure requirements? 

• What are the requirements and options for transitioning to the new standard? 

Leases 

• Defining a lease 

• Separating a contract into lease and non-lease components 

• Recognition exemptions for short-term leases and leases of low-value assets 

• Determining the lease term 

Lessee accounting 

• Recognition – right-of-use model 

• Initial and subsequent measurement 

• Lease modifications 

• Presentation 

• Disclosure 

Lessor accounting 

• Classification as operating or finance leases 

• Finance leases - recognition and measurement 

• Operating leases - recognition and measurement 

• Presentation 

• Disclosure 

Sale and leaseback transactions 

• Assessing whether a transfer is a sale or a financing 

• Recognition and measurement by seller-lessees and buyer-lessors 

Public sector-specific arrangements 

• Concessionary leases 

• Rights to use assets for no consideration 

Transitioning to IPSAS 43 

This course is delivered in a highly interactive, expert-led format designed to ensure participants gain both technical knowledge and practical skills: 

• Group internet-based instruction by IPSAS specialists, offering deep insights into the nuances of IPSAS 43 and its implications on lease accounting 

• Real-world case studies and worked examples to demonstrate the application of the new lease accounting standards in various scenarios 

• Step-by-step walkthroughs of key topics such as lease recognition, measurement and presentation in financial statements 

• Interactive group discussions and Q&A sessions that foster knowledge sharing and problem-solving on common implementation challenges 

• Hands-on workshop exercises to apply IPSAS 43 concepts directly to participants' organisational contexts 

• In line with VantagePoint’s sustainability commitment, course materials are provided in digital format. Printed handouts will be limited to in-class exercises only. 

This course provides 16 hours of CPE/CPD credits.

VantagePoint is currently in the process of registering with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.nasbaregistry.org.

Our face-to-face courses are typically held in meeting rooms at centrally located four-star hotels. If you have any queries about the venue for your selected training, please don't hesitate to ask. We will provide updates and ensure that you have all the details you need. 

Virtual courses are delivered via Zoom.