United States

IASB discusses COVID-19-related matters


At its April 17, 2020 meeting, the International Accounting Standards Board (IASB) discussed COVID-19-related matters, including the following:

  • The Board decided to propose extending by one year the effective date of an amendment, “Classification of Liabilities as Current or Non-current,” to International Accounting Standard 1, Presentation of Financial Statements.
  • The Board also decided to propose an amendment to International Financial Reporting Standard (IFRS) 16, Leases, to help entities account for COVID-19-related rent concessions, such as rent holidays. As such, the Board issued an Exposure Draft, Covid-19-Related Rent Concessions – Proposed amendment to IFRS 16, which, if finalized, would:
    • Provide lessees with an optional exemption from assessing whether a COVID-19-related rent concession is a lease modification. Lessees that apply the exemption would be required to account for the COVID-19-related rent concessions as if such concessions were not lease modifications. This practical expedient would apply only to rent concessions occurring as a direct consequence of the COVID-19 pandemic and only if all of the following conditions are met:
      • The change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change
      • Any reduction in lease payments affects only payments originally due in 2020
      • There is no substantive change to other terms and conditions of the lease
    • Require lessees that apply the practical expedient to disclose that fact
    • Require lessees to apply the practical expedient retrospectively, recognizing the cumulative effect of initially applying the amendment as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of the reporting period in which a lessee first applies the amendment 

If finalized, the amendment would be effective for annual reporting periods beginning on or after June 1, 2020. 

The Exposure Draft is available for comment until May 8, 2020.

How can we help you?

To discuss how our team can help your business, contact us by phone 800.274.3978 or


Subscribe to Financial Reporting Insights