IASB issues amendment to IFRS 16 to extend practical expedient for COVID-19 related rent concessions by one year
02 April 2021
The IASB has published Covid-19-Related Rent Concessions beyond 30 June 2021, which amends IFRS 16 Leases.
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 current 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.
The amendment is to be applied retrospectively, recognising the cumulative effect of initially applying the amendment as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of the annual reporting period in which the lessee first applies the amendment.
The amendment may be accessed here.