The draft endorsement criteria assessment (DECA) clarifies changes to lease liability in a sale and leaseback following narrow-scope amendments issued by the International Accounting Standards Board (IASB) in September 2022.

The amendments add requirements explaining how a seller-lessee subsequently accounts for sale and leaseback transactions with variable lease payments that do not depend on an index or rate.

This will affect all companies that apply UK-adopted international accounting standards and will affect up to 1,500 entities listed on the London Stock Exchange and a further 14,000 companies that report under International Financial Reporting Standards (IFRS).