Covid-19 IFRS 16

IFRS 16 further amendment to COVID-19 related rent concessions

The International Accounting Standard Board (IASB) published an amendment to IFRS 16 Leases in 2020 for rent concessions as a result of COVID-19. This offered an exemption to lessees a practical expedient from assessing whether the rent concession is a lease modification for period beginning on or after 1 June 2020. This exemption was only applicable to Covid-19-related rent concessions that reduce lease payments due on or before 30 June 2021.

This February the IASB proposed an extension of this period limitation to include lease payments due originally on or after 30 June 2022. This amendment is expected to be effective from 1 April 2021 applied through a modified retrospective approach with early application permitted.

Deadline for comments to the exposure draft is 25 February 2021. Click for the press release and the exposure draft.