6. November 2020

ASCG comments on recent IFRS IC agenda decision

Today, the ASCG has submitted a comment letter to the IFRS IC – tentative agenda decision on Sale and Leaseback of an Asset in a Single-Asset Entity (IFRS 10/16) .

We agree with the outcome of the tentative agenda decision that we deem appropriate. However, we believe that its rationale could be improved by stating whether the existence of a corporate wrapper does or does not have an influence on the transaction concerned. Further, we point to a prior issue (“Sale of a subsidiary to a customer”, see IASB Update June 2020) also touching on a transaction comprising an asset in a corporate wrapper. We suggest the IFRS IC re-deliberate that issue in the context of this recent issue, with the aim of working off both issues/submissions consistently.