The FRC has published Amendments to FRS 102 and FRS 105 – COVID-19-related rent concessions beyond 30 June 2021 in order to extend the time condition attached to amendments issued last year.

The original amendments, issued in October 2020, require COVID-19-related rent concessions to be recognised in the period that they are intended to compensate, subject to certain conditions. One of the conditions was that any reduction in lease payments affects only payments originally due on or before 30 June 2021.

However, as the COVID-19 pandemic has continued, the FRC has decided it is necessary to extend the attached time condition in order to allow the requirements to be applied consistently to concessions that are similar in substance to those covered by the original requirements. As a result, the requirements introduced in October 2020 will now apply to rent concessions for which any reduction in lease payments affects payments originally due on or before 30 June 2022, provided the other conditions are met.

The amendments are effective for accounting periods beginning on or after 1 January 2021, with early application permitted.

For more information, visit ICAEW’s dedicated coronavirus and financial reporting hub