IASB publishes COVID-19 guidance on IFRS 16, will discuss COVID-19 implications in supplementary meeting
Apr 10, 2020
On April 10, 2020, the International Accounting Standards Board (IASB) published a document responding to questions regarding the application of IFRS 16, "Leases" during the period of enhanced economic uncertainty arising from the COVID-19 pandemic. At its upcoming meeting, the IASB will discuss the matter further and will also consider effective dates, consultations periods and publication dates in general.
Similar to the guidance on IFRS 9 published in March, the new guidance on IFRS 16, Leases is intended to support the consistent application of requirements in IFRS Standards. Therefore, it highlights requirements within IFRS 16 and other IFRS Standards that are relevant for companies considering how to account for rent concessions granted as a result of the covid-19 pandemic; it does not change, remove nor add to, the requirements of IFRS 16. Please click to access the document on the IASB website. The IASB has also announced that the issue will be discussed by the IASB at its upcoming meeting.
At the meeting, the IASB will also discuss:
- whether to propose a deferral by one year to 1 January 2023 of the effective date of the amendments to IAS 1 regarding the classification of liabilities;
- whether to extend the consultation period for three major ongoing consultations (the ED General Presentation and Disclosures, the RfI Comprehensive Review of the IFRS for SMEs Standard, and the DP Business Combinations — Disclosures, Goodwill and Impairment) by three months; and
- delaying the publication of forthcoming major consultation documents originally planned for 2020.
The Appendix A of agenda paper 32 for the meeting offers a tabular overview over the proposed changes to consultation document timelines.
Review the press release on the IASB's website.
