The International Accounting Standards Board (Board) has today extended by one year the application period of the practical expedient in IFRS 16 Leases to help lessees accounting for covid-19-related rent concessions.
In response to calls from stakeholders and because the covid-19 pandemic is still at its height, the Board has extended the relief by one year to cover rent concessions that reduce only lease payments due on or before 30 June 2022.
The original amendment was issued in May 2020 to make it easier for lessees to account for covid-19-related rent concessions, such as rent holidays and temporary rent reductions, while continuing to provide useful information about their leases to investors.
The amendment is effective for annual reporting periods beginning on or after 1 April 2021.
Access Covid-19-Related Rent Concessions beyond 30 June 2021, which amends IFRS 16. The amendment is freely available for three months (with a Basic subscription). eIFRS paid subscribers can access the amendment and accompanying materials.