This site uses cookies to provide you with a more responsive and personalised service. By using this site you agree to our use of cookies. Please read our cookie notice for more information on the cookies we use and how to delete or block them.
The full functionality of our site is not supported on your browser version, or you may have 'compatibility mode' selected. Please turn off compatibility mode, upgrade your browser to at least Internet Explorer 9, or try using another browser such as Google Chrome or Mozilla Firefox.

FRC proposes extending application period for accounting requirements covering COVID-19-related rent concessions

  • FRC Image
  • covid1 Image

22 Apr 2021

The Financial Reporting Council (FRC) has issued Financial Reporting Exposure Draft (FRED) 78 'Draft amendments to FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland and FRS 105 The Financial Reporting Standard applicable to the Micro-entities Regime - COVID-19-related rent concessions beyond 30 June 2021'.

FRED 78 proposes that the requirements originally introduced into FRS 102 and FRS 105 in October 2020, regarding accounting for temporary rent concessions for operating leases occurring as a direct consequence of the COVID-19 pandemic, are extended to apply to rent concessions that reduce only lease payments originally due on or before 30 June 2022 provided the other conditions for applying the requirements are met.

The FRC considers that, as pandemic restrictions continue, extending the existing time condition by 12 months is necessary to ensure these concessions are accounted for consistently and in a way that best reflects their substance. These changes would apply both to FRS 102 and FRS 105 reporters. 

The comment deadline for FRED 78 is 11 May 2021. The proposals in FRED 78 are expected to apply to accounting periods beginning on or after 1 January 2021, with early application permitted.

Click for (all links to FRC website):

Correction list for hyphenation

These words serve as exceptions. Once entered, they are only hyphenated at the specified hyphenation points. Each word should be on a separate line.