Consultation response on IFRS 16 leases
exposure draft 18 (01)
01 August 2018
HM Treasury are proposing some adaptations and interpretations of IFRS 16 – mainly in relation to the options set out in the standard for implementation of the standard’s requirements. We are largely supportive of the proposals but have some concerns about what they mean in practice. In particular, it is not yet clear what the impact on capital funding will be and how the mismatch between ESA 10 and IFRS 16 will be managed. More information is needed on issues such as consolidation and valuation of right of use assets.