UK-adoption of Amendments for Covid-19-Related Rent Concessions beyond 30 June 2021

The Secretary of State for Business, Energy and Industrial Strategy (BEIS), in exercise of the powers conferred by statutory instrument 2019/685, adopted on 12 May 2021, the following amendment to international accounting standards for use within the United Kingdom:

Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) (the March 2021 Amendment).

The March 2021 Amendment extends the availability of a optional practical expedient, which applied only to rent concessions, e.g. rent holidays or rent reductions, that occur as a direct consequence of the covid-19 pandemic and met certain other conditions. If these conditions were met, lessees were permitted, by way of a practical expedient, not to assess whether a covid-19-rent concession is a lease modification under IFRS 16. The March 2021 Amendment extends the date a lessee is permitted to apply the practical expedient by a year—from payments due on or before 30 June 2021—to payments due on or before 30 June 2022. It is effective for annual reporting periods beginning on or after 1 April 2021. Earlier application is permitted, including in financial statements not authorised for issue (or signed) at 31 March 2021.

Link to the Adoption statement

Link to the UK-adopted international accounting standard