IASB extends practical expedient for covid-19-related rent concessions

The International Accounting Standards Board (IASB) recently extended by one year the application period for the practical expedient in International Financial Reporting Standard 16, Leases, to help lessees account for covid-19-related rent concessions. The practical expedient permits lessees not to assess whether particular rent concessions occurring as a direct consequence of the covid-19 pandemic are lease modifications and instead to account for those rent concessions as if they are not lease modifications. The extended relief covers rent concessions, such as rent holidays and temporary rent reductions, that reduce only lease payments due on or before June 30, 2022. The amendment is effective for annual reporting periods beginning on or after April 1, 2021.