EFRAG issues its final endorsement advice on the IASB's proposed amendment to IFRS 16 and COVID 19
05 April 2021
The European Financial Reporting Advisory Group (EFRAG) has issued its final
endorsement advice letter relating to the use in the European Union (EU) of
'Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16)'
('the Amendment').
The Amendment extends, by one year, the May 2020 amendment that
provides lessees with an exemption from assessing whether a COVID-19-related rent
concession is a lease modification.
EFRAG recommends the endorsement of the Amendment. EFRAG’s assessment is that the
Amendment meets all the technical endorsement criteria of the IAS Regulation and is
conducive to the European public good.
A press release and the endorsement advice letter to the European Commission are
available on the EFRAG website. EFRAG has also updated its endorsement
status report.