UK adopts IFRS amendments for Covid-19-Related Rent Concessions beyond 30 June 2021

13 May 2021

In May 2020, the IASB amended IFRS 16 to provide lessees with a practical expedient that relieves a lessee from assessing whether a COVID-19-related rent concession is a lease modification.

In March 2021, the IASB issued Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16). This amendment extends the date a lessee is permitted to apply the practical expedient by a year from payments due on or before 30 June 2021 to payments due on or before 30 June 2022.

This amendment has now been adopted for use in the UK. It is effective for annual reporting periods beginning on or after 1 April 2021. Earlier application is permitted, including in financial statements not authorised for issue (or signed) at 31 March 2021.

The adoption statement for the amendment is available on the UK Endorsement Board (UKEB) website.

The UKEB has also updated its adoption statement report which is available on its website here.