New item: IFRS 16 Leases—Definition of a Lease: Substitution Rights: The Committee received a submission about how to assess whether a contract contains a lease applying IFRS 16 when the supplier has particular substitution rights and at what level an entity evaluates whether that right is substantive. The contract in the fact pattern is for the use of 100 similar assets. The supplier has the practical ability to substitute alternative assets throughout the period of use but is expected to benefit economically from the exercise of its right to substitute only after some time into the period of lease. The staff concluded that there is an identified asset because the asset is specified and the supplier’s substitution right is not substantive throughout the period of use. The staff also concluded that the level to evaluate whether the substitution right is substantive is on each asset. The staff recommend not adding a standard-setting project to the work plan and instead to publish a tentative agenda decision.

Potential annual improvements to IFRS Accounting Standards: The staff will ask whether the Committee members agree with their preliminary views on the following six proposed amendments to IFRS Accounting Standards and to include them in the next annual improvements cycle:

• IFRS 1 First-time Adoption of International Financial Reporting Standards—terminology update
• IFRS 10 Consolidated Financial Statements—'De facto agent’ assessment
• IFRS 9 Financial Instruments—terminology update
• IAS 7 Statement of Cash Flows—terminology update
• IFRS 7 Financial Instruments: Disclosures—reference update
• IFRS 7 Financial Instruments: Disclosures—implementation guidance

Input on IASB project: Post-implementation Review (PIR) of IFRS 15 Revenue from Contracts with Customers: The IASB has started the PIR of IFRS 15 which aims at assessing whether the effects of applying new requirements on users of financial statements, preparers, auditors and regulators are as intended when the IASB developed those requirements. The purpose of the discussion is to ask the Committee members to share their views on the implementation and ongoing application of IFRS 15, including the matters that the Committee members think the IASB should consider in the PIR of the Standard.

Work in progress: There are two new matters that have not been presented to the Committee.

The full agenda for the meeting and our com­pre­hen­sive pre-meet­ing summaries can be found here.