Consensus (paras. 3-9)
Superseded by IFRS 16: Leases for annual reporting periods beginning on or after 1 January 2019. Earlier application is permitted for entities that apply IFRS 15: Revenue from Contracts with Customers at or before the date of initial application of this Standard.
3 A series of transactions that involve the legal form of a lease is linked and shall be accounted for as one transaction when the overall economic effect cannot be understood without reference to the series of transactions as a whole. This is the case, for example, when the series of transactions are closely interrelated, negotiated as a single transaction, and takes place concurrently or in a continuous sequence. (Part A of the accompanying guidance provides illustrations of application of this Interpretation.)
4 The accounting shall reflect the substance of the arrangement. All aspects and implications of an arrangement shall be evaluated to determine its substance, with weight given to those aspects and implications that have an economic effect.
5 IAS 17 applies when the substance of an arrangement includes the conveyance of the right to use an asset for an agreed period of time. Indicators that individually demonstrate that an arrangement may not, in substance, involve a lease under IAS 17 include (Part B of the accompanying guidance provides illustrations of application of this Interpretation):