IASB decides to extend IFRS 16 practical expedient: COVID-19 related rent concessions
12 March 2021
A supplementary meeting of the IASB was held on 10 March 2021, in which the IASB considered the feedback received on the Exposure Draft Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed Amendments to IFRS 16).
The Board tentatively decided to finalise the proposal in the Exposure Draft with an additional explanatory transition paragraph. The Board is proposing to extend the practical expedient by 12 months – i.e. permitting lessees to apply it to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022.
The Board decided to begin the balloting process for the amendment to IFRS 16 without re-exposing it. Two Board members indicated that they intend to dissent from the amendment to IFRS 16.
The Board plans to issue the amendment to IFRS 16 on 31 March 2021.
The update from IASB on the supplementary meeting may be accessed here.