Lease Concessions Related to the Effects of COVID-19: An IFRS 16 Guide for Lessees

As a result of the coronavirus pandemic, commercial tenants who have negotiated agreements for deferred rent or other lease concessions with their landlords will need to account for these lease modifications on their balance sheets. The International Accounting Standards Board (IASB) recently issued an amendment to IFRS 16 to help make accounting for these rent concessions more manageable.

In this guide, we’ll explain in general terms the lease accounting methods based on the IFRS 16 Amendment and provide some sample journal entry examples. You’ll learn:

• How to determine if COVID-19 rent concessions should be treated as lease modifications
• What to do if you receive a COVID-19 rent concession
• How technology can help you deal with lease concessions
• What a sample lease accounting journal entry will look like

Learn more about MRI Software’s lease accounting solutions.