12/10/2020 - EFRAG Endorsement Status Report - Update
The endorsement by the European Commission of Amendment to IFRS 16 Leases Covid 19-Related Rent Concessions is now reflected in the Endorsement Status Report.
The European Union has published a Commission Regulation endorsing of the Amendment to IFRS 16 Leases Covid 19-Related Rent Concessions. The Amendments are effective for annual periods beginning on or after 1 June 2020.
The Amendment permits lessees, as a practical expedient, not to assess whether particular COVID-19-related rent concessions are lease modifications. Therefore, if meeting the conditions, lessees that apply the practical expedient would recognise the amount of rent forgiven on or before 30 June 2021 in income in the year of the concession. In the absence of the practical expedient, it would have been recognised in income over the duration of the contract.
Link to the publication in the Official Journal of the European Union: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2020.331.01.0020.01.ENG&toc=OJ:L:2020:331:TOC.
The updated EFRAG Endorsement Status Report can be downloaded below and under the menu 'Endorsement Status'.
