• IASB publishes Exposure Draft Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)

IASB publishes Exposure Draft Covid-19-Related Rent Concessions beyond 30 June 2021 (Proposed amendment to IFRS 16)

12 February 2021

The IASB has released Exposure Draft Covid-19-Related Rent Concessions beyond 30 June 2021, which proposes to amend IFRS 16 to provide an extension to the practical expedient in accounting for rent concessions granted as a direct consequence of COVID-19.

The amendment to IFRS 16, issued on 28 May 2020, provided a practical expedient to lessees if the rent concession met certain criteria. One of the criteria was that any reduction in lease payments could only affect payments originally due on or before 30 June 2021. The IASB is now proposing to extend the relief to cover rent concessions that reduce lease payments due on or before 30 June 2022.

The Exposure Draft may be accessed here. Comments on the Exposure Draft are requested by 25 February 2021.