News type icon

27/03/2017 - EFRAG Endorsement Advice on IFRS 16 Leases.

​EFRAG has completed its due process regarding IFRS 16 Leases and has submitted its Endorsement Advice to the European Commission.


​IFRS 16 replaces IAS 17 Leases and associated interpretations. IFRS 16 eliminates the classification of leases as either finance or operating for lessees and requires lessees to recognise assets and liabilities for all leases, with some optional exemptions. It substantially retains the lessor accounting from IAS 17.

IFRS 16 will become effective for annual periods beginning on or after 1 January 2019, with earlier application permitted under certain conditions.

EFRAG has submitted its Endorsement Advice relating to IFRS 16 for use in the European Union and European Economic Area. EFRAG assesses that IFRS 16 meets all technical endorsement criteria of the IAS Regulation and is conducive to the European public good. It therefore recommends endorsement of IFRS 16. EFRAG's recommendation is explained in the letter to the European Commission and the accompanying appendices.

The Endorsement Advice letter to the European Commission can be found below.  ​

EFRAG's Final Endorsement Advice on IFRS 16.pdf

EFRAG has also updated its Endorsement Status Report, which can be downloaded here.