IASB extends IFRS 16 break for covid-19-related rent concessions

The International Accounting Standards Board (IASB) has extended by one year the application period in IFRS 16 Leases to help lessees accounting for covid-19-related rent concessions in light of the pandemic

In response to calls from stakeholders and because the covid-19 pandemic is still at its height, the IASB has extended the relief by one year to cover rent concessions that reduce only lease payments due on or before 30 June 2022.

The original amendment to IFRS 16 was issued in May 2020 to make it easier for lessees to account for covid-19-related rent concessions, such as rent holidays and temporary rent reductions, while continuing to provide relevant information about their leases to investors.

The amendment is effective for annual reporting periods beginning on or after 1 April 2021.

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