IFRS 16 - Changes to help lessees
27 April 2020
The COVID-19 outbreak has led to many lessors requesting and agreeing rent holidays and other lease concessions from their landlords/lessors. This can lead to a range of accounting issues under the current IFRS 16 rules.
On 17 April 2020, the IASB agreed to make some narrow scope amendments to IFRS 16 will provide significant operational relief for lessees that are accounting for lease concessions as a result of COVID-19. The Board approved the principles underlying amendments to IFRS 16: read details of the proposals in BDO’s IFR Bulletin.
An exposure draft of the proposed amendments has now been issued for a very short consultation exercise – comments are required by 8 May 2020. Read the Exposure draft.
The IASB is expected to issue the final amendments in May 2020 with the revised standard applying for annual reporting periods beginning on or after 1 June 2020 (earlier application will be permitted).
The IASB is not currently proposing any standard changes or relief for lessors.
For help and advice on IFRS 16 issues please get in touch with your usual contact or Mark Edwards.
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