EFRAG draft comment letter on the IASB's proposed amendment to IFRS 16

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

22 Dec, 2020

The European Financial Reporting Advisory Group (EFRAG) has issued a draft comment letter on the IASB exposure draft ED/2020/4 'Lease Liability in a Sale and Leaseback (Proposed amendment to IFRS 16)'.

The proposed amendment aims at clarifying how a seller-lessee should apply the subsequent measurement requirements in IFRS 16 Leases to the lease liability that arises in a sale and leaseback transaction.

EFRAG supports the proposals in the exposure draft as they provide practical guidance on an area not currently addressed by IFRS 16 while relying on existing measurement principles. However, EFRAG encourages the IASB to reconsider the matter more broadly as part of the future post-implementation review of IFRS 16.

Comments on EFRAG's draft comment letter were originally requested by 21 February 2021; however, to allow more time for stakeholders to provide their view, the comment deadline has been extended to 23 March 2021. For more information, see the press release and the draft comment letter on the EFRAG's website.

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