CA ANZ and CPA Australia have supported proposals contained in IASB ED 2021-2/AASB ED 308 Covid-19-Related Rent Concessions beyond 30 June 2021, to extend the life of simplifications for COVID -19 rent concessions that are permitted as a result of 2020 amendments to IFRS/AASB/NZ IFRS 16 Leases.

These concessions allow lessees the option of simplifying the treatment of any COVID-19 related rent concessions, such as rent reductions or rent holidays, which might otherwise require complex recalculation of lease liabilities. Initially the amendments, introduced via AASB 2020-4 Amendments to Australian Accounting Standards – Covid-19-Related Rent Concessions, and NZ amendment Covid-19-Related Rent Concessions, applied only to lease payments made prior to June 2021. However, as the COVID 19 pandemic’s impact continues, this relief continues to be necessary and so the proposals will ensure lease payments due on or before 30 June 2022 are also covered.