EFRAG Webcast about the surveys related to the PIR of IFRS 16 Leases

In February 2024, EFRAG launched two online surveys to gather input from diverse stakeholder groups on the effects of the implementation of IFRS 16. EFRAG is extending the deadline for responses to 22 April 2024.
To learn more about the purpose and content of the surveys, check out our video with Jens Berger (EFRAG FR TEG Vice Chair) and Kathrin Schöne (EFRAG Project Director).
The related news item, including access to the surveys, can be found here: efrag.org/news...
Transcript:
Kathrin Schöne:
We would like to speak today about the Post-Implementation Review of IFRS 16 Leases.
My name is Kathrin Schöne, I am EFRAG Project Director, and I’m here today with Jens Berger, EFRAG FR TEG Vice Chair, who is joining us from Frankfurt.
EFRAG started collecting all the necessary information in anticipation of the IASB’s request for information.
This proactive PIR approach will give us time to analyse and prioritise issues.
The collection of information aims to improve our understanding of stakeholders’ overall assessment of IFRS 16 and it aims to identify any issues with the standard and its application.
This includes any controversial interaction with other IFRS Accounting Standards.
We would like to understand whether there is any need for future standard setting.
The process will allow for comparing costs for preparers and benefits for users of financial statements.
As a first step, we intend to develop an inventory of issues.
To do this we launched one survey for the preparers and their auditors, national standard-setters and regulators and one survey for the users of financial statements.
Of course, we are also working our way through the literature. However, it is much better to have the issues explained using practical examples and to examine this from two sides: the side of the preparer and the side of the user.
Therefore, we would like to encourage our stakeholders to complete and share the online surveys we launched in February.
We extend the deadline now to 22 April in order to receive sufficient feedback for these surveys.
And for those who do not like to fill out surveys, we have a message as well. Please offer us a time slot for an interview, and we will come back to you.
Jens, could you please briefly explain why this feedback is important for you as a TEG member?
Jens Berger:
In short, your contributions have the potential to influence the IASB’s thinking and offer invaluable suggestions to address any relevant concerns.
More specifically, they will be used for drafting EFRAG’s comment letter in response to the IASB’s request for information.
As Kathrin has already explained, the aim of the surveys is to take stock of and better understand the issues using practical examples.
The relevant industry is being considered.
The survey also aims to prioritise issues.
Hence, it requires a ranking of those issues.
The survey responses will allow us as EFRAG FR TEG to reflect on the views of preparers and users.
Do cost-intensive requirements really result in relevant information for users?
Is there any important information missing?
In the following month, we will analyse where changes to IFRS 16 might be necessary.
For sure, we will keep in mind not to disturb the implemented approaches too much, but in some areas, change might be sensible.
Of course, a post-implementation review also provides information that is relevant for future standard-setting projects.
Was the transition period long enough?
Were the right simplifications and cost-mitigating factors chosen?
Is there a balanced cost-benefit ratio?
Are the requirements challenging for auditors and enforcers?
IFRS 16 had a major impact on companies, and application remains challenging in some sectors.
I look forward with interest to the feedback from the survey.
Final frame:
We are looking forward to receiving your input by 22 April. We sincerely appreciate your attention to this topic! Thank you.