BC294A The IASB decided to require a seller-lessee to apply the amendments retrospectively in accordance with IAS 8. The IASB expects the benefits of retrospective application to outweigh the expected costs because:
(a) sale and leaseback transactions often involve the sale of high-value items of property, plant and equipment with long economic lives. The accounting for such transactions could have a long-term material effect on the financial position of a seller-lessee. It is therefore important for users of financial statements that seller-lessees apply IFRS 16 consistently to those transactions.
(b) the amendments are expected to affect only the subsequent measurement of lease liabilities arising from a sale and leaseback transaction:
(i) with variable lease payments;
(ii) occurring from the date of initial application of IFRS 16 (1 January 2019 for most seller-lessees); and
(iii) for which the seller-lessee’s accounting policy differs from the requirements specified in these amen
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