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Overview

Date recorded:

The IASB held a supplementary IASB meeting to consider COVID-19-related matters on Friday 17 April 2020.

Accounting for COVID-19-related rent concessions: The Board decided to amend IFRS 16 to provide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease modification. Entities applying the exemption will be able to account for the changes on the basis that they are not lease modifications. The exemption would have to be applied retrospectively but comparative figures would not be restated. A lessee would recognise 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 exemption would be effective immediately, when the final amendment is issued.

The Board will ask the Trustees to approve a 14-day comment period for the proposed amendment. The staff think it will be possible to finalise an amendment to IFRS 16 by the end of May 2020 if the Trustees approve a 14-day comment period.

Board timelines, impact of COVID-19: The Board decided to change some project timelines, as a result of the COVID-19 pandemic. Some projects continue to be high priority despite the unprecedented global crisis including the project on IBOR Phase 2 and the project on amendments to IFRS 17.

The Board decided to:

  • delay by one year the effective date of Classification of Liabilities as Current or Non-current (Amendments to IAS 1) to annual reporting periods beginning on or after 1 January 2023.
  • extend the consultation period by (approximately) three months for the following consultation documents:
    • the Exposure Draft General Presentation and Disclosures;
    • the Request for Information Comprehensive Review of the IFRS for SMEs Standard; and
    • the Discussion Paper Business Combinations—Disclosures, Goodwill and Impairment.

The publication dates of forthcoming major consultation documents planned for 2020 will also be delayed.

For the delay in the IAS 1 amendment the Board decided to expose the change to the effective date with a 30-day comment period. The Due Process Oversight Committee has already authorised a short comment period.

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