EFRAG Meeting on IFRS 16

The European Financial Reporting Advisory Group (EFRA)G will hold its next meeting on 7 February 2017 to approve and discuss a draft letter to the European Union regarding the endorsement of IFRS 16 Leases

The meeting follows on a preliminary consultation document regarding the endorsement of IFRS 16 and a questionnaire seeking the views of users on a number of issues in relation to its assessment on costs and benefits and whether IFRS 16 is an improvement over IAS 17 Leases, which IFRS 16 will replace.

The draft letter concludes that IFRS 16:

• is not contrary to the true and fair principle;
• would improve financial reporting with an acceptable cost-benefit trade off;
• would not appear to have an adverse effect of the European economy; and
• meets the qualitative characteristics of relevance, reliability, comparability and understandability required to support economic decisions and the assessment of stewardship.

Therefore EFRAG recommends IFRS 16 be endorsed without further delay.

The agenda and associated papers, including the draft endorsement advice letter can be obtained from EFRAG’s web site here.