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IFRS® Accounting Standards

IFRS 16 and COVID-19


The Accounting Standards Board (AcSB) is participating in the International Accounting Standards Board’s (IASB) project to amend IFRS 16 Leases.

The objective of this project is to continue providing lessees with practical relief during the height of the COVID-19 pandemic while enabling them to continue providing useful information about their leases to users of financial statements. The proposed amendment to IFRS 16 would extend the availability of the exemption by one year to June 30, 2022. This means that the exemption applies to rent concessions for which any reduction in lease payments affects only payments originally due on or before June 30, 2022, provided the other conditions in IFRS 16 for applying the practical expedient are met.

The AcSB’s due process includes ensuring that Canadian entities’ financial reporting needs are considered by the IASB and issuing the AcSB’s own exposure draft on each IASB proposal. Subject to the responses to the AcSB’s exposure draft on whether the IASB’s proposals are appropriate for application in Canada, the AcSB expects that the amendments will be incorporated into Canadian GAAP. This is in accordance with the AcSB’s strategy of adopting IFRSs for publicly accountable enterprises.

Staff Contact(s)

Grace Flis, CPA, CA Principal, Accounting Standards Board

Project Status

  • Information gathering

    Completed prior to February 2021.

  • Approving project

    The IASB added the project to its agenda in February 2021.

  • Consulting stakeholders

    The IASB issued its Exposure Draft in February 2021.

    The AcSB issued it's Exposure Draft in February 2021

  • Deliberating feedback

    The IASB and AcSB are deliberating comments on their Exposure Drafts.

  • Final pronouncement

    The IASB issued the final amendments in April 2021.

    The AcSB completed its endorsement process and incorporated the amendments into Canadian GAAP in April 2021.


March 2, 2021

International Activity

AcSB Response – COVID-19-Related Rent Concessions beyond June 30, 2021 (Proposed Amendment to IFRS 16)

On February 25, 2021, the AcSB submitted a comment letter responding to the IASB’s Exposure Draft issued in February 2021. The letter agrees with the proposal to extend the relief related to COVID-19 related rent concessions and suggests factors to consider when selecting the extension timeframe. The letter also suggests that the transition provisions provide more flexibility. 

February 16, 2021

Document for Comment

AcSB Exposure Draft – Covid-19-Related Rent Concessions beyond June 30, 2021 (Proposed amendment to IFRS 16)

The AcSB has issued its Exposure Draft that corresponds to the IASB’s Exposure Draft on this topic. Stakeholders are encouraged to submit their comments by February 25, 2021.

February 11, 2021

International Activity

IASB Exposure Draft – COVID-19-Related Rent Concessions beyond June 30, 2021 (Proposed amendment to IFRS 16)

The IASB is responding to the challenges facing lessees as a result of the ongoing effects of the COVID-19 pandemic. This new Exposure Draft amends IFRS 16 to extend the availability of the exemption for COVID-19-related rent concessions by one year to June 30, 2022. Canadian stakeholders are encouraged to submit their comments to the IASB by February 25, 2021.


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 ballot process.