15/06/2015 - EFRAG requests a public fatal flaw review of the forthcoming Leases Standard
On 15 June 2015, EFRAG sent a letter to the IASB requesting a public fatal flaw review of the forthcoming Leases Standard.
EFRAG believed that significant judgment will be needed to apply the forthcoming Leases Standard and, unless entities are able to properly understand and apply the new requirements including the definition of a lease, there will be a significant and wasteful use of time debating possible interpretations, which will lead to a real risk of divergent application.
EFRAG explains that the objective of the public review is not to re-open the discussion on the fundamental principles but to ensure that constituents understand the requirements and how to apply them.
EFRAG's letter can be accessed below.