• IASB votes to finalise amendments to IFRS 16 – COVID-19 related rent concessions

IASB votes to finalise amendments to IFRS 16 – COVID-19 related rent concessions

21 May 2020

On 15 May 2020, the IASB met the consider feedback they had received on the exposure draft issued in April 2020, COVID-19 Related Rent Concessions.

The Board voted to finalise the proposed amendments to IFRS 16, with some changes being made:

1. extend the condition proposed in paragraph 46B(b) to capture covid-19-related rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2021;

2. require a lessee applying the practical expedient to disclose the amount recognised in profit or loss to reflect changes in lease payments that arise from covid-19-related rent concessions; and

3. specify that in the reporting period in which a lessee first applies the amendment, the lessee is not required to disclose the information required by paragraph 28(f) of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.

The Board decided not to take further action in response to the accounting requirements for lessors.

It is expected that the amendments will be released in final by the end of May 2020.

A summary of the IASB’s meeting may be accessed here.