This publication provides an overview of the implications and includes a list of helpful resources to support you as you navigate your impairment assessment.

Review the publication on the AcSB's website.

This publication provides an overview on the potential effects the current situation may have on the discount rates used by companies in the various valuation techniques under IFRS^® Standards.

Review the publication on the AcSB's website.

This publication provides an overview and includes helpful resources to support you as you determine the fair value of your assets and liabilities.

Review the publication on the AcSB's website.

Background

The COVID-19 pandemic has led to some lessors providing relief to lessees by deferring or relieving them of amounts that would otherwise be payable.  In some cases this is through negotiation between the parties, but can be as a consequence of a government encouraging or requiring that the relief be provided. Such relief is taking place in many jurisdictions in which entities that apply IFRS Standards operate.

When there is a change in lease payments, the accounting consequences will depend on whether that change meets the definition of a lease modification, which IFRS 16, Leases defines as “a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease (for example, adding or terminating the right to use one or more underlying assets, or extending or shortening the contractual lease term)”.

The proposed amendment published today are intended to provide practical relief to lessees in accounting for rent concessions arising as a result of the COVID-19 pandemic.

Suggested changes

The changes proposed in ED/2020/2 Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16) would amend IFRS 16 to

1. provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification;
2. require lessees that apply the exemption to account for COVID-19-related rent concessions as if they were not lease modifications;
3. require lessees that apply the exemption to disclose that fact; and
4. require lessees to apply the exemption retrospectively in accordance with IAS 8, but not require them to restate prior period figures (a lessee would recognize any difference arising on initial application of the amendment in opening retained earnings (or other component of equity, as appropriate) in the annual reporting period that includes the date of initial application).

The proposed amendment would not supersede the educational material recently published on the same topic, but rather the two complement each other.

The IASB is not proposing any additional relief for lessors as the current situation is not as equally challenging for lessors, as most have operating leases and even if they have lease modifications, the required accounting is not as complicated.

Comment period

The IFRS Foundation's Due Process Handbook sets out that 75% of the Trustees must approve comment periods shorter than 30 days. In a phone meeting on April 17, 2020, the Trustees approved a 14-day comment period. Therefore, comments on the proposed changes are requested by May 8, 2020.

Effective date

The Board expects to finalize the amendment to IFRS 16 by the end of May 2020 and proposes an effective date of June 1, 2020 for the final amendment (earlier application permitted, including in financial statements not yet authorized for issue at the date the amendment is issued).

Additional information

• IASB press release
• IASB exposure draft

This resource will help you to understand what you need to know about events after the reporting period.

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Entities should use professional judgment to assess how this will impact the accounting for income taxes in accordance with IFRS^® Standards.

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The AcSB would like input from Canadian respondents on the following additional question regarding the proposed amendments:

The IASB has developed the proposed amendment in accordance with its due process for application around the world. Assuming the Exposure Draft proposal is finalized and approved by the IASB in accordance with its due process, do you think that the proposal is appropriate for application in Canada? If not, please specify which aspects of the proposal, and what circumstances, make the accounting requirements proposed in the Exposure Draft inappropriate.

Review the press release and exposure draft on the AcSB's website.

This means companies should use professional judgement and consider the potential implications that COVID-19 could have relating to the accounting for leases under IFRS 16, "Leases".

Review the publication on the AcSB's website.

Women’s economic participation and leadership are essential to driving business performance and achieving gender balance on corporate boards. This report by Catalyst offers a snapshot of progress for the companies included in the S&P/TSX Composite Index over a 5-year time period ending December 31, 2019, as well as a comparative perspective on progress versus all disclosing companies on the TSX. It also provides a full list of Index companies with 30% or more women on boards and 30% or more women on executive teams.

Review the report on Catalyst's website.

This guide covers the impact of COVID-19 on the financial statements.

Review the publication on the AcSB's website.