20/02/2024 - EFRAG survey seeks input from users on the effects of the implementation of IFRS 16 Leases – Has the reporting for leasing activities been improved?
As part of its outreach on the Post-implementation Review of IFRS 16 Leases, EFRAG invites users of financial statements to provide their views on the usefulness of information as a result of the implementation of IFRS 16, by filling in the EFRAG survey. The survey feedback will complement the feedback received from preparers, auditors, regulators, and national standard setters.
Participants can access the survey contents as a PDF here and complete the survey here until 15 April 2024.
EFRAG is seeking users’ input in preparation of the IASB request for information (RFI) related to the post-implementation review of IFRS 16 Leases (PIR of IFRS 16). It aims to complement the feedback we are collecting through a separate survey of preparers, auditors, regulators, and national standard setters, launched on 13 February here.
To address users’ concerns, in 2016 the IASB issued IFRS 16, which introduced a single accounting model for lessees and required enhanced disclosure by lessors of information about their risk exposure. In December 2023, the IASB decided to start its post-implementation review (PIR) of IFRS 16 in Q2 2024. The objective of a PIR is to assess whether the effects of applying new requirements on stakeholders are as intended when the IASB developed those new requirements. A PIR is not a standard-setting project and does not automatically lead to standard-setting, nor is it intended to address every application question. However, a PIR might result in standard-setting or clarifications.
As a part of EFRAG’s preparatory work in anticipation of the IASB’s RFI, among other activities, EFRAG has launched this survey to collect feedback on whether recognition, measurement, presentation and disclosure requirements in IFRS 16 result in useful information from entities which helps users of financial statements assess the effect of leases on an entity’s financial position, financial performance and cash flow. Any feedback received will be useful to complement preparers’ views of the costs associated with the implementation of IFRS 16.
EFRAG is also interested in understanding whether there is new evidence suggesting the need for a change in IFRS 16.
Wherever beneficial, EFRAG is interested in follow-up meetings or calls to gain the best possible understanding of the issues identified through the survey. Therefore, participants are encouraged to provide their availability at the end of the survey.
Participants can access the survey contents as a PDF here and complete the survey here until 15 April 2024.
Related project: IFRS 16 Post-implementation Review
