On 24 April 2020, the IASB issued ED/2020/2 Covid-19-Related Rent Concessions Proposed amendment to IFRS 16 (the ED) with a comment period ending 8 May 2020. The ED proposes an amendment to IFRS 16 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.

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.

On 12 May 2020, EFRAG issued a Final Comment Letter. In its Final Comment Letter, EFRAG agreed with the proposals in the ED. 

On 2 June 2020, EFRAG submitted its Endorsement Advice relating to the Amendment for use in the European Union and European Economic Area. EFRAG assessed that the Amendment meets the technical endorsement criteria of the IAS Regulation and is conducive to the European public good. It therefore recommended its endorsement.

On 12 October 2020 the European Union has published a Commission Regulation endorsing of the Amendment.