EFRAG submits its Endorsement Advice on COVID-19 Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)
09 April 2021
On 31 March 2021, the IASB issued Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) (the Amendment).
The amendment extends the practical expedient available to lessees in accounting for COVID-19 related rent concessions by one year. The practical expedient provided by the amendment to IFRS 16 issued in May 2020 was available for reductions in lease payments that affected only payments originally due on or before 30 June 2021. The Amendment extends this period to 30 June 2022.
The Amendment is effective for annual reporting periods beginning on or after 1 April 2021, with earlier application permitted, including in financial statements not authorised for issue at 31 March 2021.
EFRAG has now submitted its Endorsement Advice for use of the Amendment in the European Union and European Economic Area to the European Commission. EFRAG has assessed that the Amendment meets the technical endorsement criteria of the IAS Regulation and is conducive to the European public good and has recommended its endorsement.
The Endorsement Advice Letter may be accessed here.