Understanding ASPE 3065: A Guide to Lease Accounting for Canadian Private Enterprises

ASPE 3065 is the lease accounting standard under Accounting Standards for Private Enterprises (ASPE) in Canada. It governs how private companies recognize, measure, and disclose lease arrangements in their financial statements.

While public companies in Canada must follow IFRS 16, private enterprises that elect to follow ASPE are instead subject to Section 3065. It’s less complex than IFRS 16 or ASC 842, but still requires careful treatment of lease obligations and disclosures.

How ASPE 3065 Classifies Leases

Under ASPE 3065, leases are classified into two categories:

• Capital Leases: These are leases that effectively transfer substantially all the benefits and risks of ownership. They must be recorded on the balance sheet.
• Operating Leases: These leases do not transfer ownership risks and are treated as rental expenses over the lease term.

A lease is considered a capital lease if it meets at least one of the following conditions:

• Ownership transfers at the end of the lease term
• The lease includes a bargain purchase option
• The lease term is 75% or more of the asset’s useful life
• The present value of lease payments equals 90% or more of the asset’s fair value

If none of these apply, the lease is classified as an operating lease and handled off-balance-sheet.

Key ASPE 3065 Requirements

Private enterprises using ASPE must:

• Assess lease classification at inception
• Recognize capital lease assets and obligations on the balance sheet
• Record interest expense and depreciation separately for capital leases
• Disclose future minimum lease payments for all leases, including operating ones

When Do You Need to Apply ASPE 3065?

If your business is a private enterprise in Canada that has not adopted IFRS, ASPE 3065 applies to all lease agreements you enter into.

You’ll likely need to assess your leases under Section 3065 if:

• You're preparing financials for an audit or tax filing
• You're seeking financing or investors who require GAAP-compliant statements
• You're entering into long-term equipment or property leases
• You're considering switching to IFRS or planning to go public

The classification and documentation process should happen at lease inception — and it’s critical to ensure accuracy early, especially if your team manages multiple leases across locations or entities.

ASPE 3065 vs. IFRS 16 and ASC 842: Key Differences

Understanding the differences is critical for companies expanding into the U.S. or planning an IPO to future-proof your accounting practices.

Understanding the differences is critical for companies expanding into the U.S. or planning an IPO to future-proof your accounting practices.

How Spacebase Helps

If your business is managing leases under ASPE 3065, manual spreadsheets are no longer enough. Spacebase helps simplify compliance with:

• Lease classification logic built into onboarding
• Automated amortization schedules for capital leases
• Accurate interest and depreciation calculations
• Disclosure-ready reports for your accountant or auditor
• Multi-entity tracking for national or cross-border lease portfolios

Whether you report under ASPE, IFRS, or ASC 842, Spacebase keeps your team organized and compliant and saves hours at month-end close.

Final Thoughts

ASPE 3065 may seem simpler than international standards, but it still carries weight when it comes to reporting accuracy and audit readiness. A strong lease accounting process isn’t just about compliance — it gives your finance team clarity and control.

Need help navigating ASPE 3065?
Schedule a demo and see how Spacebase makes Canadian lease accounting easier.

Brooke Colglazier

Marketing Manager