SIC-15
Historical
Operating Leases–Incentives
Addressed how lessees and lessors should account for lease incentives, requiring them to be recognised as part of net consideration over the lease term. Superseded in 2019 by IFRS 16.
Historical Reference
SIC-15 was superseded in January 2016 when the IASB issued IFRS 16 Leases, which replaced operating lease incentives with the right-of-use asset measurement model for lessees and changed the accounting for lease incentives.
This page is retained for historical and comparative reference. Entities should refer to the current standard that superseded this interpretation for authoritative guidance.
Current Standard
IFRS 16 Leases 1
What SIC-15 Addressed (Historical)
What SIC-15 addressed
SIC-15 addressed how lessees and lessors should account for lease incentives provided in connection with an operating lease. It clarified whether incentives should be recognised as a reduction of rental expense or income, or whether they should be treated as a separate financing arrangement.
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The Conclusion It Reached (Historical)
The conclusion it reached
SIC-15 concluded that lease incentives should be recognised as part of the net consideration for the use of the leased asset. Lessees should recognise the benefit of incentives as a reduction of rental expense over the lease term, while lessors should recognise the cost of incentives as a reduction of rental income over the lease term, both on a straight-line basis or another systematic basis.
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Where This Guidance Lives Today
Where this guidance lives today
Superseded byIFRS 16 Leases
Why withdrawnIFRS 16 replaced operating lease incentives with right-of-use asset measurement for lessees
Current statusSuperseded
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Glossary
Lease incentive
An inducement offered by the lessor to the lessee to enter into an operating lease, such as rent-free periods or payments for relocation costs.
Right-of-use asset
An asset that represents the lessee's right to use the underlying leased asset during the lease term, as introduced by IFRS 16.
Financial statement key
BS Balance sheet
IS Income statement
SE Statement of changes in equity
OCI Other comprehensive income
SCF Statement of cash flows
History & Development
Jan-1998
In January 1998 the Standing Interpretations Committee issued SIC-15 Operating Leases–Incentives.
Apr-2001
In April 2001 the International Accounting Standards Board adopted SIC-15.
Minor consequential amendment to SIC-15
Jan-2016
In January 2016 the Board issued IFRS 16 Leases which superseded SIC-15.
Superseded by IFRS 16 (effective 2019)