Proposals to Extend the Practical Relief for Lessees for Covid-19-Related Rent Concessions – AASB Exposure Draft ED 308

Friday, February 12, 2021

ED 308 Covid-19-Related Rent Concessions beyond 30 June 2021 proposes to extend by one year the practical expedient added to AASB 16 Leases in 2020 to help lessees in accounting for covid-19-related rent concessions.

The original amendment was issued in June 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 useful information about their leases to investors. The amendment permitted lessees, as a practical expedient, not to assess whether particular rent concessions provided as a consequence of the covid-19 pandemic are lease modifications. The practical relief currently applies to rent concessions that reduce lease payments due on or before 30 June 2021.

The ED proposes to extend the relief to cover rent concessions that reduce lease payments due on or before 30 June 2022.

The Exposure Draft will be open for comment for 14 days only to the IASB. Please have your say and send your comments to the AASB by 22 February 2021 via the AASB website, LinkedIn or email to standard@aasb.gov.au.

 

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