FRC extends application period for Covid-related rent concessions

The Financial Reporting Council (FRC) has issued two amendments to FRS 102 and FRS 105, relating to Covid-19-related rent concessions beyond 30 June 2021.

Both amendments extend the application of requirements that cover the accounting requirements of temporary rent concessions resulting as a direct consequence of the coronavirus pandemic by one year.

Following these amendments, the requirements apply to rent concessions that reduce only lease payments originally due on or before 30 June 2022, as long as the other conditions for applying the requirements are met.

The amendments will be effective for accounting periods beginning on or after 1 January 2021.

In a statement on its website, the FRC stated: “The amendments respond to the continuing impact of the pandemic and help ensure these concessions are accounted for consistently and in a way that best reflects their substance.”