EFRAG issues draft endorsement advice on Amendments to IFRS 16
15 Nov, 2022
The European Financial Reporting Advisory Group (EFRAG) has issued a draft endorsement letter and a separate invitation to comment relating to the use in the European Union (EU) of 'Lease Liability in a Sale and Leaseback (Amendments to IFRS 16) (‘the Amendments’).
The Amendments specify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 Revenue from Contracts with Customers to be accounted for as a sale.
EFRAG recommends the endorsement of the Amendments. EFRAG’s initial assessment is that the Amendments meet the technical requirements of the Regulation (EC) No 1606/2002 of the European Parliament and of the Council on the application of international accounting standards.
Comments are requested by 9 January 2023.
For more information, see the press release, the draft endorsement advice letter and the invitation to comment on the EFRAG website. EFRAG has also updated its endorsement status report to reflect the draft endorsement advice.