Lease receivables and lease liabilities

Learning objectives

• Explain the choice of the simplified approach for lease receivables and the 2024 cross-reference on the derecognition of lease liabilities (gain or loss on extinguishment).L2, L3

Normative references

• IFRS 9 §3.3.3The difference between the carrying amount of a financial liability (or part of it) extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss. The treatment of costs and fees on an exchange or modification is set out in para. B3.3.6A (included in the gain or loss on extinguishment; otherwise, an adjustment to the carrying amount amortised over the remaining term). Para. 2.1(b)(ii) makes the lessee's lease liabilities subject to paras. 3.3.1 and 3.3.3 (Annual Improvements Volume 11, annual periods beginning on or after 1 January 2026).
• IFRS 9 §5.5.15Simplified approach: the loss allowance is always measured at an amount equal to lifetime expected credit losses, without stages, for trade receivables and contract assets that do not contain a significant financing component (including when the IFRS 15 practical expedient is applied); for those that contain a significant financing component and for lease receivables (IFRS 16), the entity chooses this approach as its accounting policy, applied separately to each type of asset; this paragraph overrides paras. 5.5.3 and 5.5.5.

Original summaries of the paragraphs (reference register), never a quotation of the standard.

1 question

• Mistral SA, a lessor, holds lease receivables under IFRS 16. Which statement about the impairment of these receivables is consistent with IFRS 9?L3