Date posted: 23/07/2020 2 min read

Submission on ensuring clear consistent disclosure of COVID-19 rent concessions

Joint CA ANZ CPA submission supports updated disclosure requirements in AASB 1060 relating to COVID-19 rent concessions

CA ANZ and CPA Australia have supported the proposals in AASB ED 303 that ensure that entities eligible to apply AASB 1060 General Purpose Financial Statements – Simplified Disclosures for For-Profit and Not-for-Profit Tier 2 Entities (AASB 1060) apply consistent disclosure requirements when they apply the accounting simplifications for COVID -19 rent concessions permitted by AASB 16 Leases via AASB 2020-4 Amendments to Australian Accounting Standards – Covid-19-Related Rent Concessions).

The accounting simplifications offered by AASB 2020-4 will help to ease the reporting burden of applying AASB 16 to COVID -19 rent concessions and promote an internationally consistent solution to this challenge. However clear consistent disclosure will be important to assist users to understand how the simplification has been applied. Therefore these disclosures should also apply to those Tier2 entities able to early adopt AASB 1060.