Scope and Background Economies across the globe are severely affected by the impact of COVID-19 and after completion of three quarters of year 2020 the magnitude of this crisis is still worrying the businesses and governments.
We extend our sincere gratitude to the efforts of the health professionals and governments working tirelessly to combat the effects of COVID-19 and we we stand together in these challenging times and work for our future.
COVID-19 is requiring prepares of financial statements to reconsider whether assumptions and assessments previously made are still valid and appropriate, creating an additional burden on accountants world-wide. Recognising the COVID-19 pandemic and its effects on financial reporting, International Accounting Standards Board (IASB) issued certain amendments to IFRS 16 Leases to simplify and provide guidance for lessees in accounting for Covid-19 related lease concessions including temporary rent reductions and rent deferrals.
This research study focuses on how an Entity assesses rent concessions that qualifies for practical expedient – including its accounting.