Date: 25 February 2021
UKEB supports amendment to IFRS 16 extending Covid-Related-Rent concessions
In May 2020 an amendment to IFRS 16 provided lessees with relief in the form of an optional exemption from assessing whether a rent concession related to COVID-19, and that meets certain conditions, is a lease modification. The Exposure Draft proposed extending the qualifying date of lease payment concessions for this practical expedient from 30 June 2021 to 30 June 2022. The comment letter to the IASB agreed with this proposal. A copy of the response can be found here.
IASB has stated that the Board plans to issue the final amendment by the end of March 2021. The UK Endorsement Board secretariat plan to issue a draft Endorsement Criteria Assessment for public consultation in the same week IASB publish the final amendment. The curtailed process is aimed at enabling completion of adoption procedures by early May, making the amendment available for use by UK registered entities with financial years ending on or after 31 March 2021.
Due to the restricted timeframe a single feedback statement covering all stages of the project will be published within 30 days of the adoption date.
Find more information on the UK Endorsement Board’s approach to this project here