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01/05/2020 - EFRAG draft comment letter and preparatory draft of the Endorsement Advice on IASB ED/2020/2 Covid-19-Related Rent Concessions (amendment to IFRS 16)

​EFRAG has​ published a Draft Comment Letter and a preparatory draft of the Endorsement Advice on the IASB ED/2020/2 Covid-19-Related Rent Concessions (amendment to IFRS 16). Comments on the draft comment letter are requested by 7 May, and for the preparatory draft Endorsement Advice by 20 May.


​On 24 April 2020, the IASB has issued ED/2020/2 Covid-19-Related Rent Concessions Proposed amendment to IFRS 16 (the ED). The ED proposes an amendment to IFRS 16 Leases to permit lessees, as a practical expedient, not to assess whether particular covid-19-related rent concessions are lease modifications. Instead, lessees that apply the practical expedient would account for those rent concessions as if they were not lease modifications. The ED proposes no change for lessors.

This amendment is urgently needed to deal with the implications of the pandemic on such leases. Given the urgency of the matter both the IASB and EFRAG have substantially reduced their consultation periods and are having a fast track due process.

In order to receive timely input from our stakeholders, EFRAG is issuing both a Draft Comment Letter and a preparatory draft of the Endorsement Advice.

The issuance of a preparatory draft of the Endorsement Advice before the issuance of the final Amendment is to allow for the finalisation of the endorsement advice as soon as possible after the IASB has issued the amendment to IFRS 16.  The preparatory draft of the Endorsement Advice is based on the assumption that the contents of the final Amendments will not be substantially different from the contents of the ED.

EFRAG requests comments on its draft responses to the questions raised in the ED and to the questions raised by EFRAG in the draft comment letter by 7 May 2020. Comments on the preparatory draft Endorsement Advice should be provided by 20 May 2020.

The Draft Comment Letter can be found he​re​ and the preparatory draft of the Endorsement Advice can be found here​.​

You can comment on EFRAG's draft comment letter by 7 May and preparatory draft endorsement advice by 20 May by clicking on the 'Comment publication' link below.​