The Financial Reporting Standards Council (FRSC) has approved on April 14, 2021 the adoption of amendments to IFRS 16 Leases, Covid-19-Related Rent Concessions beyond 30 June 2021 issued by the International Accounting Standards Board (IASB) in March 2021 as amendments to PFRS 16 Leases, Covid-19-Related Rent Concessions beyond 30 June 2021.

In June 2020, the FRSC adopted the amendments to PFRS 16 which provide relief to lessees from applying the PFRS 16 guidance on lease modifications to rent concessions arising as a direct consequence of the Covid-19 pandemic. The amendments apply to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2021, provided the other conditions for applying the practical expedient are met.

The 2021 amendments extend the practical expedient to now apply to rent concessions for which any reduction in lease payments affects only payments originally due on or before 30 June 2022.

An entity shall apply these amendments to annual reporting periods beginning on or after 1 April 2021. Earlier application is permitted, including in financial statements not authorized for issue at 31 March 2021.

The preface to the foregoing amendments can be accessed here.