IFRS 16 and Covid 19 [Completed]
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Effective date: |
The amendment is effective for annual reporting periods beginning on or after June 1, 2020. Earlier application is permitted, including in financial statements not yet authorized for issue at May 28, 2020. The amendment is also available for interim reports. |
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Last updated: |
May 2020 |
Overview
The International Accounting Standards Board (the Board) added a project to its agenda to provide practical relief to lessees in accounting for rent concessions arising as a result of the Covid 19 pandemic.
At the same meeting, the Board tentatively decided to provide lessees with an optional exemption from assessing whether a Covid19 related rent concession is a lease modification and account for those rent concessions as if they were not lease modifications.
Other developments
May 2020
On May 28, 2020, the IASB published Covid-19-Related Rent Concessions (Amendment to IFRS 16) amending the standard to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Concurrently, the IASB also published a proposed Taxonomy Update to reflect this amendment.
April 2020
On April 24, 2020, the Accounting Standards Board (AcSB) issued its exposure draft that corresponds to the IASB’s Exposure Draft on this topic. Comments are requested by May 8, 2020.
On April 24, 2020, the International Accounting Standards Board (IASB) published an exposure draft "Covid-19-Related Rent Concessions (Proposed amendment to IFRS 16)" that contains a proposed amendment that would provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Comments are requested by May 8, 2020.
On April 17, 2020, IASB staff updated the Work Plan to indicate that the Board plans to issue an Exposure Draft in April 2020.
