Open for comment, UK Endorsement Board secretariat’s draft comment letter on IASB’s ED/2020/4 Lease Liability in a Sale and Leaseback

Feb 5th '21

The UK Endorsement Board secretariat has published their draft comment letter on the IASB’s ED/2020/4 Lease Liability in a Sale and Leaseback. The draft comment letter is open for comment until 1 March 2021.


The UK Endorsement Board welcome responses, both comprehensive and those addressing particular topics only.


The draft comment letter:


  • Supports the IASB’s view that the information necessary to estimate asset fair values and future lease payments is likely to be readily available, either from the process used to price and approve the sale and leaseback transaction, or from other sources.
  • Observes an inconsistency in the definition of a variable Lease Payment between that used in IFRS16 and that proposed in the exposure draft, which could lead to potential inconsistency in financial reporting.
  • Proposes two solutions to align the definition of variable Lease Payment and considers the consequences of each approach.
  • Supports the IASB decision to require retrospective application.


The UK Endorsement Board will consider all stakeholder feedback received by 1 March 2021 for inclusion in their final comment letter to the IASB.


The link to News Alert for the Invitation to comment and the Your details document is available here.


The link to the draft comment letter is available here.


For more information on the UK Endorsement Board’s approach to this project, please see their website: Click here.


Source: Financial Reporting Council