Covid-19-related rent concessions and IFRS 16

28 Jun 2021

The pandemic has meant that landlords and leaseholders have faced pressures meeting rent commitments, which has affected the accounting treatment of rent concessions. Rachel Farris, Croner-i Navigate, explains how the latest amendments to IFRS 16 Leases impact accounting

In March 2021, the IASB issued Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) (March 2021), which extends the availability of the practical expedient granted by Covid-19-Related Rent Concessions (Amendment to IFRS 16) (May 2020) by one year.