UKEB publishes its Draft Endorsement Criteria Assessment on Lease Liability in a Sale and Leaseback — Amendments to IFRS 16
06 Jan, 2023
The UK Endorsement Board (UKEB) has published its Draft Endorsement Criteria Assessment (DECA) which assesses whether 'Lease Liability in a Sale and Leaseback — Amendments to IFRS 16', issued by the International Accounting Standards Board (IASB) in September 2022, meet the UK's statutory requirements for adoption of IFRS accounting standards as set out in Statutory Instrument 2019/685.
The amendments clarify how a seller-lessee subsequently measures sale and leaseback transactions that satisfy the requirements in IFRS 15 to be accounted for as a sale.
The UKEB's draft assessment concludes that:
- the Amendments meet the criteria of relevance, reliability, comparability and understandability required of the financial information needed for making economic decisions and assessing the stewardship of management, as required by SI 2019/685 (see Regulation 7(1)(c)); and
- application of the Amendments is not contrary to the principle that an entity’s accounts must give a true and fair view as required by SI 2019/685 (see Regulation 7(1)(a)).
Additionally the UKEB tentatively concludes that the Amendments are likely to be conducive to the long-term public good in the UK.
Comments on the draft Endorsement Criteria Assessment are requested by 5 April 2023.
For more information, see the Invitation to Comment and draft Endorsement Criteria Assessment on the UKEB's website.
