EFRAG draft comment letter on rent concessions ED
01 May 2020
The European Financial Reporting Advisory Group
(EFRAG) has published a draft comment letter on the IASB exposure draft
ED/2020/2 'Covid-19-Related Rent Concessions (Proposed amendment to IFRS
16)'.
In the draft comment letter, EFRAG agrees with the proposals in the
exposure
draft published last Friday that would provide lessees with an
exemption from assessing whether a COVID-19-related rent concession is a lease
modification. However, EFRAG would support expanding the scope of the amendment to
include all rent concessions granted during 2020 and not just payments due in
2020.
EFRAG has also published a preparatory draft of an endorsement
advice of the amendment. Doing so before issuance of the final amendment by the IASB
is intended to allow for the finalisation of the endorsement advice as soon as
possible after the IASB has issued the amendment to IFRS 16. The preparatory draft
of the endorsement advice is based on the assumption that the final amendment will
not be substantially different from the proposals in the exposure draft.
Comments on EFRAG's draft comment letter are requested by 7 May
2020, comments the preparatory draft of an endorsement advice by 20 May 2020. For
more information, see the press release, the draft comment letter and the preparatory draft of an endorsement advice on the EFRAG
website.
EFRAG is also offering a public outreach event on the exposure draft
on Thursday 7 May 2020. More information is available here.