IFRS NEWS May 2025

Accounting News

Sustainability Strategy

Regarding sustainability strategy, the entity must disclose:

• The sustainability-related risks and opportunities that could reasonably be expected to affect the entity's prospects.

• The current and anticipated effects of those sustainability-related risks and opportunities on the entity's business model and value chain.

• The effects of significant sustainability-related risks and opportunities on your strategy and decision-making.

• The effects of those sustainability-related risks and opportunities on the entity's financial position, financial performance and cash flows, and

• The resilience of the entity's strategy and its business model to sustainability-related risks.

Accounting Inquiries

Sale-leaseback

For accounting purposes, when a sale and leaseback occurs, it must first be determined whether the transfer is a sale under IFRS 15.

If it is a sale, the selling lessee shall measure the right-of-use asset arising from the sale and leaseback at an amount that is the proportion of the previous carrying amount of the asset that relates to the rights of use retained by the selling lessee. The selling lessee shall recognise only the amount of any gain or loss that relates to the rights transferred to the buying lessor.

If it is not a sale, the seller-lessee will continue to recognize the transferred asset and recognize a financial liability equal to the proceeds of the transfer.