Results of a limited survey on simplifications of the IASB proposals on leases

  • EFRAG (European Financial Reporting Advisory Group) (dk green) Image

15 Apr, 2014

The European Financial Reporting Advisory Group (EFRAG) and the national standard-setters of France (ANC), Germany (ASCG), Italy (OIC) and the United Kingdom (FRC) have conducted a limited survey on the proposed simplifications to the accounting for lessees under IASB’s Exposure Draft ED/2013/6 'Leases'.

At the December meeting of ASAF, the IASB confirmed that in its redeliberations it would explore how to provide relief and and alleviate complexities associated with the proposed guidance for leases. The European delegation offered to consult with European constituents to which areas needed to be simplified the most.

Due to time constraints, the standard-setters did not conduct a public survey but contacted respondents to the prior field-test and other preparers directly. 44 respondents from 10 countries took part in the survey; the majority of which were European listed groups. The industries mostly represented were retail, automotive, telecommunication; and transport and logistics:

  • A majority of respondents supported additional recognition exemptions beyond the current short-term exemption; and
  • a majority of respondents indicated their preference for a single type A model for all leases. However, some respondents would support a single model only if the distinction between leases and services was improved in the forthcoming standard.

The Financial Reporting Council (FRC) has recently published a letter to the IASB outlining the results of outreach they performed on a number of UK preparers regarding simplifications to the leases proposals.  The results of the FRC outreach support the view for a single Type A model for lessee accounting.  

Please click to access the full report of the EFRAG website.

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.