The International Accounting Standards Board (Board) held a supplementary meeting on 15 May 2020 to:
- consider feedback in response to the April 2020 Exposure Draft Covid-19-Related Rent Concessions, which proposed an amendment to IFRS 16 Leases; and
- redeliberate the project proposal in the light of that feedback.
Feedback and project redeliberations (Agenda Paper 32A)
The Board tentatively decided to finalise the proposal in the Exposure Draft with the following changes:
- extend the condition proposed in paragraph 46B(b) to capture covid-19-related rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2021;
- require a lessee applying the practical expedient to disclose the amount recognised in profit or loss to reflect changes in lease payments that arise from covid-19-related rent concessions; and
- specify that in the reporting period in which a lessee first applies the amendment, the lessee is not required to disclose the information required by paragraph 28(f) of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors.
13 of 14 Board members agreed with this decision.
Due process and permission to ballot (Agenda Paper 32B)
The Board decided to begin the balloting process for the amendment to IFRS 16 with the changes listed in (a)–(c) and without re-exposing it. All 14 Board members agreed with this decision.
All 14 Board members confirmed they were satisfied the Board has complied with the applicable due-process requirements to begin the process for balloting the amendment to IFRS 16.
No Board member indicated that he or she intends to dissent from the amendment to IFRS 16.
Lessors (Agenda Paper 32C)
The Board decided to take no further action in response to feedback about lessor accounting. All 14 Board members agreed with this decision.
The Board plans to issue the amendment to IFRS 16 on or around 28 May 2020.