The Australian Accounting Standards Board is reconsidering the requirement for not-for-profit entities to bring peppercorn leases into their financial reports at fair value.
The AASB has been made aware that many NFPs are having difficulty in determining the fair value of the properties subject to peppercorn leases.
The matter is expected to be decided on at a Board Meeting on 13 November 2018.
We recommend that if you are in the process of obtaining a valuation of a property subject to a peppercorn lease, you should stop that process until after the abovementioned AASB Board meeting.
Should you have any questions in relation to this matter please do not hesitate to get in touch.