European field-test of the proposed accounting guidance for leases

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

22 May 2013

The European Financial Reporting Advisory Group (EFRAG) and the national standard-setters of France (ANC), Germany (ASCG), Italy (OIC) and the United Kingdom (FRC) are performing a field-test in order to evaluate how the proposals contained in the IASB Exposure Draft ED/2013/6 'Leases' would affect European companies applying IFRS.

For lessees, the ED published on 16 May 2013 proposes the recognition of a liability and a right-of-use asset for all leases with a profit or loss impact dependent on the classification of a lease. The lessor model in the ED is similar to current lease accounting with some nuances for the recognition of revenue and discounting of the residual asset.

The field-test initiated by EFRAG and the big national standard-setters in Europe is meant to help to understand the nature, terms and conditions of lease arrangements currently in use and the implications of the proposed guidance. It is designed to find out whether the proposed guidance creates implementation or operational difficulties, and one of the aspects is also the question what effort would be required to implement and apply the proposed guidance.

The field-test is conducted with the help of a survey. It will start on 3 June 2013 and completed questionnaires should be returned by 31 July 2013. Entities wishing to participate in the field-test are asked to contact their national standard-setters (where applicable) or EFRAG. Copies of the questionnaire will be sent to them.

Further information is available through the press release on the EFRAG website.

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