ASCG submits comment letter on EFRAGs Preliminary Consultation Document regarding the endorsement of IFRS 16

The ASCG submitted its Comment Letter on EFRAGs Preliminary Consultation Document regarding the endorsement of IFRS 16 Leases.

In the Comment Letter the ASCG cites existing points of criticism and limitations in regards to lease accounting. After pondering the strengths and weaknesses of the standard as well as the advantages or disadvantages of endorsement, however the ASCG thinks that, on balance, the benefits of IFRS 16 outweigh those aspects. Therefore, the ASCG supports endorsement of IFRS 16.

Additionally, it is flagged that the ASCG believes it is of utmost importance to ensure endorsement of IFRS 16 in a timely manner, so that entities domiciled in the EU can make use of earlier application, if they choose so.