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Leases – Accounting for rent concessions as a result of the COVID-19 pandemic (Amendments to Section 3065) [ED]

Comment period ends October 2, 2020

Next steps:

The AcSB will deliberate the proposals in light of comments received. Once the deliberation process is complete and the due process procedures for finalizing a standard are carried out, the AcSB plans to issue the amendments in November 2020 if no significant changes are required to the proposals.

Last updated:

September 2020


As a result of the COVID-19 pandemic, many enterprises are receiving rent concessions. This includes lease payment deferrals or payment forgiveness, or they are renegotiating lease terms.

Section 3065Leases provides guidance on accounting for changes in the provisions of an existing lease and requires that any such changes be accounted for as a new lease (i.e. a lease modification). This could be onerous for private enterprises with many leases if all rent concessions needed to be accounted for as new leases. Accordingly, the AcSB decided to amend Section 3065 to provide relief for both lessees and lessors on accounting for rent concessions as a result of the COVID-19 pandemic.


Other developments

September 2020

On September 18, 2020, the AcSB released an exposure draft and seeks feedback on its proposals to provide relief for both lessees and lessors on accounting for lease modifications received or granted as a result of the COVID-19 pandemic. These proposals apply to private enterprises and NFPOs applying Parts II and III of the CPA Canada Handbook – Accounting. Comments are requested by October 2, 2020.


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