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COVID-19 Related Rent Concessions

COVID-19 Related Rent Concessions

Moore Global

IFRS 16 Leases contains requirements that specify the accounting for changes in lease payments, including rent concessions, where entities are required to assess whether such rent concessions are lease modifications. However, as a direct consequence of the Covid-19 pandemic during 2020, large volumes of rent concessions have been, or are expected to be, granted to lessees. These rent concessions can be in the form of rent holidays or rent reductions for a period of time, possibly followed by increased rent payments in future periods. Nevertheless, entities may find it practically difficult to apply those requirements, especially in the light of the unprecedented challenges during the pandemic.

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