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Covid-19-Related Rent Concessions Amendment
to IFRS 16
In May 2020, the IASB issued Covid-19-Related
Rent Concessions (Amendment to IFRS 16) that
provides practical relief to lessees in accounting for
rent concessions occurring as a direct consequence of
COVID-19, by introducing a practical expedient to IFRS
16. The practical expedient permits a lessee to elect not
to assess whether a COVID- 19-related rent concession
is a lease modification. A lessee that makes this
election shall account for any change in lease payments
resulting from the COVID-19-related rent concession
the same way it would account for the change applying
IFRS 16 if the change were not a lease modification.
The practical expedient applies only to rent concessions
occurring as a direct consequence of COVID-19 and
only if all of the following conditions are met:
a) The change in lease payments results in revised
consideration for the lease that is substantially
the same as, or less than, the consideration for
the lease immediately preceding the change;
b) Any reduction in lease payments affects only
payments originally due on or before 30 June
2021 (a rent concession meets this condition if it
results in reduced lease payments on or before
30 June 2021 and increased lease payments
that extend beyond 30 June 2021); and
c) There is no substantive change to other
terms and conditions of the lease.
The application of these revised IFRSs has not
had any material impact on the amounts reported
for the current and prior years but may affect the
accounting for future transactions or arrangements.
Effective for annual periods 3.2.2 New and amended IFRSs in issue
beginning on or after
but not yet effective and not early adopted
1 June 2020
Interest Rate Benchmark Reform—Phase 2
(Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4
and IFRS 16)
The amendments address issues that might affect
financial reporting as a result of the reform of an interest
rate benchmark, including the effects of changes to
contractual cash flows or hedging relationships arising
from the replacement of an interest rate benchmark
with an alternative benchmark rate. The amendments
provide practical relief from certain requirements in
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 relating
to: – changes in the basis for determining contractual
cash flows of financial assets, financial liabilities
and lease liabilities; and – hedge accounting.
Amendments to IFRS 3 - Reference
to the Conceptual Framework
The amendments update IFRS 3 so that it refers to
the 2018 Conceptual Framework instead of the 1989
Framework. They also add to IFRS 3 a requirement that,
for obligations within the scope of IAS 37, an acquirer
applies IAS 37 to determine whether at the acquisition
date a present obligation exists as a result of past events.
For a levy that would be within the scope of IFRIC 21
Levies, the acquirer applies IFRIC 21 to determine
whether the obligating event that gives rise to a liability
to pay the levy has occurred by the acquisition date.
Finally, the amendments add an explicit statement
that an acquirer does not recognise contingent
assets acquired in a business combination. The
amendments are effective for business combinations
for which the date of acquisition is on or after the
QF CR A ANNU AL REP OR T 2020
Effective for annual periods
beginning on or after
1 January 2021
beginning of the first annual period beginning
on or after 1 January 2022. Early application is
permitted if an entity also applies all other updated
references (published together with the updated
Conceptual Framework) at the same time or earlier.
Amendments to IAS 16 - Property, Plant and 1 January 2022
Equipment—Proceeds before Intended Use Early application permitted.
The amendments prohibit deducting from the cost
of an item of property, plant and equipment any
proceeds from selling items produced before that
1 January 2022 asset is available for use, i.e. proceeds while bringing
the asset to the location and condition necessary for it
to be capable of operating in the manner intended by
management. Consequently, an entity recognises such
sales proceeds and related costs in profit or loss. The
entity measures the cost of those items in accordance
with IAS 2 Inventories. The amendments also clarify
the meaning of ‘testing whether an asset is functioning
properly’. IAS 16 now specifies this as assessing
whether the technical and physical performance of
the asset is such that it is capable of being used in
the production or supply of goods or services, for
rental to others, or for administrative purposes.
T ABLE OF C ONTENT S