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IPSAS 43 - Leases

The time to act is now. So get it on balance!

IPSAS 43 sets out a comprehensive model for the identification of lease arrangements and the treatment in the financial statements of both lessees and lessors. A notable aspect of IPSAS 43 is that the lessee and lessor accounting models are asymmetrical.

While the IPSASB has retained the IPSAS 13’s finance lease/operating lease distinction for lessors, the distinction is no longer relevant for lessees. All lease contracts, including rental contracts, will be recognised on the statement of financial position of the lessees, with some exceptions in limited circumstances.

For lessees, IPSAS 43 introduces a right-of-use model that replaces the risks and rewards incidental to ownership model in IPSAS 13, Leases. For lessors, IPSAS 43 substantially carries forward the risks and rewards incidental to ownership model in IPSAS 13.

IPSAS 43 will replace IPSAS 13 for reporting periods beginning on or after 1 January 2025 with a retrospective application by default.

How Deloitte Can Help

Impact Assessment

In line with your individual requirements and preliminary analysis, we develop the best approach to introduce the new leasing standard at your organisation.

Contract Review

We list all contracts that are affected under the new leasing standard and develop a leasing database with relevant terms and conditions.

Systems & Processes

We identify the gaps in your current system and implement the lease accounting and financing guidelines.

Change in Strategy

We assist you in identifying the best strategy for future leasing contracts and contract terms.


We support you in communicating the impact of the new leasing standard to external parties and within your organization to different stakeholders

Key Phases to a Successful Implementation

Summary of Each Phase

Phase 0 - The preliminary phase of the adoption effort should focus on developing a robust project governance, performing a preliminary readiness assessment, and setting up the planning for implementation.

Phase 1 - The key accounting judgments and transition reliefs under the new leases standard should be assessed as early as possible, in view of developing the entity’s accounting policies. Once completed, the set-up of the revised chart of accounts and disclosure notes can be anticipated.

Phase 2 - The detailed analysis in which the need for new processes and systems for the identification, recording and management of leases should be identified.

Phase 3 - In order to achieve the successful roll out of the upcoming new leasing standard principles prior to transition date, Phase 3 entails the implementation of new financial reporting and business processes, internal controls and systems (including the deployment of a new technology solution and related data validation/migration).

Phase 4 - This involves performing a post-implementation review regarding IT (Information Technology) systems and newly implemented internal controls and processes, as well as maintaining lease data on an ongoing basis.

Deloitte is happy to discuss the above points further, upon request.

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