IFRS 16 and Covid 19 – International Accounting Standards Board

May 15, 2020

At its meeting on May 15, 2020, the IASB tentatively decided to finalize the proposal in the Exposure Draft with the following changes: (i) 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 June 30, 2021; (ii) require a lessee applying the practical expedient to disclose the amount recognized in profit or loss to reflect changes in lease payments that arise from covid-19-related rent concessions; and (iii) 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 to begin the balloting process for the amendment to IFRS 16 with the changes listed in (i)–(iii) and without re-exposing it. No Board member indicated that he or she intends to dissent from the amendment to IFRS 16. The Board plans to issue the amendments to IFRS 16 on or around May 28, 2020.