IAS 17 Leases Scope

Scope

This Standard shall be applied in accounting for all leases other than:

(1) leases to explore for or use minerals, oil, natural gas and

similar non-regenerative resources; and

(2) licensing agreements for such items as motion picture films,

video recordings, plays, manuscripts, patents and copyrights.

However, IAS 17 shall not be applied as the basis of measurement for:

(1) property held by lessees that is accounted for as investment

property (see IAS 40 Investment Property);

(2) investment property provided by lessors under operating

leases (see IAS 40);

(3) biological assets held by lessees under finance leases (see

IAS 41 Agriculture); or

(4) biological assets provided by lessors under operating leases

(see IAS 41).

IAS 17 applies to agreements that transfer the right to use assets, even though the lessor may provide services in connection with the operation, or maintenance, of such assets.

IAS 17 does not apply to agreements that are for services, that do not transfer the right to use assets, from one contracting party to the other.