Deloitte comment letter on tentative agenda decision on IFRS 11 — Liabilities in relation to a joint operator’s interest in a joint operation
We have commented on the IFRS Interpretations Committee's publication in the September 2018 IFRIC Update of the tentative decision not to take onto the Committee's agenda the request for clarification on the recognition by a joint operator of liabilities to which it has the primary responsibility.
We agree with the IFRS Interpretations Committee's decision not to add this item onto its agenda for the reasons set out in the tentative agenda decision; however, we believe additional clarity could be added by specifying that (a) in the circumstances described in the tentative agenda decision, the lead operator has primary responsibility for the lease liability; and (b) the Committee did not opine on the accounting for any contractual arrangements which may exist between joint operators in respect of a leased asset.
Download the full comment letter below.
