NZASB Update 8/2021

COVID-19 rent concessions extended to 2022, IASB ED Lack of Exchangeability

This NZASB Update provides you with an overview of the New Zealand Accounting Standards Board’s recent activities, any new standards or interpretations, as well as other matters of interest.
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In this NZASB Update we feature the:

  • New NZ IFRS amending standard extends the COVID-19 related rent concessions
  • IASB proposals for accounting when no foreign exchange rate exists
  • Documents currently open for comment

NZ IFRS amending standard: Covid-19 rent concessions are extended to 2022

COVID-19-Related Rent concessions after 30 June cover

Applies to:

For-profit

In 2020, the IASB amended IFRS 16 Leases to provide relief to lessees impacted by Covid-19. As many lessees continue to be affected by the pandemic, the IASB has extended the availability of the practical expedient by one year to include Covid-19-related rent concessions which reduce lease payments due on or before 30 June 2022.

The amending standard extends the availability of the practical expedient in NZ IFRS 16 Leases to align with IFRS 16. The practical expedient permits lessees to elect not to assess whether Covid-19-related rent concessions are lease modifications. Instead, lessees that apply the practical expedient account for those rent concessions as if they were not lease modifications.

The amending standard is effective for accounting periods beginning on or after 1 April 2021. Earlier adoption is permitted including in financial statements not authorised for issue at 23 April 2021 (the date the standard was issued).

Have a look

IASB proposes amendments for accounting when no foreign exchange rate exists

IASB Lack of Exchangeability ED cover

Applies to:

For-profit

The IASB ED, Lack of Exchangeability, proposes requirements to determine:

  • whether a currency is exchangeable into another currency, and
  • how to account for foreign currency transactions and the results of foreign operations when the relevant currency is not exchangeable.  

We encourage you to read the ED and to comment on the proposals. In particular, the proposals would be of interest to:

  • entities that have operations in countries where there are restrictions on currency conversions; and
  • entities that have customers or suppliers in these countries. 

For more information on the proposals and how to provide feedback, please refer to the link below.

Send your comments to the NZASB by 19 July 2021 and to the IASB by 1 September 2021.

Have a Look 

Consultation papers open for comment

The following consultation papers are currently open for comment.

We welcome your comments and feedback, either formal or informal, by the due dates below. You can submit your comments directly from the consultation page on our website following the links below.

IASB Consultation Documents

For-profit

* Request for Information

IPSASB Consultation Documents

Not-for-profitPublic Sector

NZASB Update is intended to provide subscribers with a summary of the recent activities of the New Zealand Accounting Standards Board (NZASB). Links to websites are correct at the time of publication. Subscribers should not rely on this newsletter as a definitive publication of updates. The External Reporting Board and its sub-Board the NZASB do not guarantee, and accept no legal liability whatsoever arising from or connected to, the accuracy, reliability, currency, timeliness or completeness of this newsletter. The information contained in this newsletter does not constitute advice and should not be relied upon as such.

NZASB Update refers to the work of the International Accounting Standards Board (IASB) and the International Public Sector Accounting Standards Board (IPSASB) and uses registered trademarks of the IFRS Foundation (for example, IFRS® Standards, IFRIC® Interpretations and IASB® papers).
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