Covid-19-Related Rent Concessions beyond 30 June 2021

Timeline

The IASB published its Covid-19 rent concessions (Proposed amendment to IFRS 16) on 11 February 2021.  The IASB’s comment deadline is 25 February 2021.

Background

2020 amendment to IFRS 16 provided lessees with relief in the form of an optional exemption from assessing whether a rent concession related to COVID-19, and that meets certain conditions, is a lease modification. Lessees can elect to account for qualifying rent concessions in the same way as they would if they were not lease modifications. That amendment only applies to payments originally due on or before 30 June 2021.  The objective of this proposed narrow-scope amendment is to extend the qualifying payment date of that practical expedient from 30 June 2021 to 30 June 2022.

Outreach

Given the very short deadlines attached to this project, we are would encourage stakeholders to share views at the earliest opportunity, both on the proposed extension of the practical expedient to 30 June 2022 and any implications for the UK adoption of this amendment, please email: Contact@endorsement-board.uk