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22/02/2017 - EFRAG publishes a study from an economic consultancy used as input to its Endorsement Advice on IFRS 16 Leases.

EFRAG commissioned a study from an independent economic consultancy as an input to its Endorsement Advice on IFRS 16 Leases. EFRAG's Draft Endorsement Advice, which is open for comment until 13 March 2017, include various references to this study. The aim of the study was to provide input into EFRAG's analysis of potential changes in the behaviour of preparers, investors and lenders arising from IFRS 16 and the economic impact of such changes including on the leasing industry and SMEs. The study also considered the estimated costs and benefits of IFRS 16.

​The study, which involved desktop research, primary data gathering and analysis (including interviews with 186 lessees and 90 lenders / lessors and other stakeholder interviews) addressed the following questions:

  • What impact could IFRS 16 have on the behaviour of lessees listed on Regulated Markets, investors and lenders and the impact of any anticipated behavioural changes on the European Union economy?
  • What economic costs and benefits could arise from the endorsement of IFRS 16?
  • What is the potential impact of endorsing IFRS 16 on the European Union leasing industry?
  • How could the implementation of IFRS 16 impact upon the financing available to unlisted SMEs?
  • What other unintended consequences could arise due to the implementation of IFRS 16?

The study can be found here.