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COVID-19 - Impact on Financial Sector - 11 May 2020

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11/05/2020

Please find below a summary of COVID-19 developments relevant to our clients; these alerts are dedicated to following up on the financial  regulators’ responses to the crisis. We have also created a COVID-19 Resource Center to offer legal and business insights as this crisis continues to evolve. We wish you and your loved ones well.

If you have any questions please feel free to contact: 

Tom Van Dyck
+32 475 90 90 91
t.vandyck@liedekerke.com

Freya Mareels 
+32 475 25 11 50
f.mareels@liedekerke.com

Wim Dedecker
+32 491 36 03 99
w.dedecker@liedekerke.com

 

8/05/2020

Letter to EFRAG on IASB Exposure Draft COVID-19 Related Rent Concessions

ESMA has contributed to the European Financial Reporting Advisory Group’s (EFRAG) due process regarding the draft comment letter on the IASB’s Exposure Draft ED/2020/2 Covid-19 Related Rent Concessions with the aim of improving the consistent application and enforceability of IFRS.

Like EFRAG, ESMA very much welcomes the initiative of the IASB to introduce a practical expedient that may provide relief for lessees in accounting for rent concessions granted by lessors in the very specific circumstances of the COVID-19 pandemic. More specifically, ESMA agrees with the proposal that a lessee should be allowed to elect not to assess whether a COVID-19 related rent concession is a lease modification or not and therefore be allowed, generally, to account for the effects of such concessions of lease payments in profit or loss. ESMA agrees that in the current circumstances such proposal would provide a practical relief to entities whilst still ensuring that users of financial information continue to have useful information on preparers’ leases. 

     


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