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Accounting Standards for Private Enterprises



As a result of the COVID-19 pandemic, many enterprises are receiving rent concessions. This includes lease payment deferrals or payment forgiveness, or they are renegotiating lease terms.

Section 3065, Leases provides guidance on accounting for changes in the provisions of an existing lease and requires that any such changes be accounted for as a new lease (i.e. a lease modification). This could be onerous for private enterprises with many leases if all rent concessions needed to be accounted for as new leases.

The AcSB decided to amend Section 3065 to provide relief for both lessees and lessors on accounting for rent concessions as a result of the COVID-19 pandemic.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to July 2020

  • Approving project

    The AcSB approved the project in July 2020

  • Engaging Communities

    The AcSB issued its Exposure Draft in September 2020

    Stakeholders are encouraged to respond by October 2, 2020

  • Deliberating feedback

    The AcSB is deliberating feedback on its Exposure Draft

  • Final pronouncement

    The final amendments will be issued in the CPA Canada Handbook – Accounting in November 2020.


November 2, 2020


Handbook Update – Section 3065, Leases

Section 3065, Leases was amended on November 2, 2020 to provide optional relief for both lessees and lessors on accounting for rent concessions received or granted as a result of the COVID-19 pandemic. These amendments are effective for fiscal years ending on or after December 31, 2020. Earlier application is permitted, including in financial statements not yet authorized for issue, so that the practical expedient is available for COVID-19-related rent concessions granted or received in 2020. Read more for further details on these amendments.

Meeting & event summaries

July 28, 2020

AcSB Decision Summary – July 28, 2020

The AcSB discussed the proposals to be included in an exposure draft to amend Section 3065, Leases, to provide relief for both lessees and lessors on accounting for rent concessions that have arisen as a consequence of the COVID-19 pandemic. The Board decided to limit the relief to rent concessions received as a direct result of COVID-19 and to only those lease payments originally due on or before December 31, 2021.

The AcSB expects to issue the exposure draft in September 2020. In response to stakeholders’ need to have the relief available for the 2020 year-end reporting period, the Board plans to issue the exposure draft with a short comment period and to incorporate the amendments into Part II of the Handbook in November 2020. Stay up to date on the progress of this project by visiting the project page.


This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.