On Thursday 23 October, the European Financial Reporting Advisory Group (EFRAG) sent the International Accounting Standards Board (IASB) its comments on the implementation of accounting standard IFRS 16 on leases. EFRAG has made suggestions to address the above-mentioned issues it has identified.
In July, the IASB requested feedback (see EUROPE 13690/27). EFRAG noted that the Standard is generally working well, particularly for operating leases, and has largely met its objective of improving lease-related financial reporting. Stakeholders appreciated the increased transparency and comparability brought about by the requirement for lessees to recognise most leases on the balance sheet.
However, EFRAG flags potential areas for targeted improvements of the Standard: the disclosure of cash flow information and inconsistencies in the interactions between ‘IFRS 16’ and other IFRS accounting standards.
Finally, the group also notes that users have expressed concern that the information provided is sometimes insufficient.
Read the letter: https://aeur.eu/f/j3x (Original version in French by Anne Damiani)