The Board held a supplementary meeting on 17 April 2020 to discuss the impact of the covid-19 pandemic. The Board discussed:
- whether to extend time lines for consultation documents and final amendments as a result of the pandemic (Agenda Paper 32);
- due process steps to delay the effective date of Classification of Liabilities as Current or Non-Current as a result of the pandemic (Agenda Paper 32A); and
- a possible amendment to IFRS 16 Leases in response to changes in lease payments that have occurred or are expected to occur as a result of the pandemic (Agenda Paper 32B).
Impact of covid-19 on Board timelines (Agenda Paper 32)
The Board tentatively decided to:
- publish an exposure draft proposing to delay the effective date of Classification of Liabilities as Current or Non-Current, which amends IAS 1, to annual reporting periods beginning on or after 1 January 2023. All 14 Board members agreed with this decision.
- extend the consultation period of the following published consultation documents by approximately three months:
- the Exposure Draft on General Presentation and Disclosures;
- the Request for Information on Comprehensive Review of the IFRS for SMEs Standard; and
- the Discussion Paper on Business Combinations—Disclosures, Goodwill and Impairment.
All 14 Board members agreed with these decisions.
The Board also discussed changes to the timelines for forthcoming consultation documents and final amendments (see the IASB work plan). Because of the uncertainty and evolving nature of the crisis, the Board will continue to monitor the situation and consider whether further changes to its timelines will be necessary.
Classification of liabilities as current or non-current—effective date delay (Agenda Paper 32A)
The Board tentatively decided to allow 30 days for comment on an exposure draft of its proposal to delay the effective date for Classification of Liabilities as Current or Non-Current. All 14 Board members agreed with this decision.
All 14 Board members confirmed that they were satisfied that the Board has complied with the applicable due-process requirements and has, in particular, undertaken sufficient consultation and analysis to begin the process for balloting the exposure draft.
No Board member indicated that he or she intends to dissent from the proposal in the exposure draft.
Next step
The Board plans to publish the exposure draft in May 2020.
Leases and covid-19 (Agenda Paper 32B)
The Board tentatively decided to:
- provide lessees with an optional exemption from assessing whether a covid-19-related rent concession is a lease modification;
- require lessees that apply the exemption to account for covid-19-related rent concessions as if such concessions were not lease modifications;
- require lessees that apply the exemption to disclose that fact;
- require lessees to apply the exemption retrospectively, recognising the cumulative effect of initially applying the amendment as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the beginning of the reporting period in which a lessee first applies the amendment;
- make the exemption immediately effective on issue of the final amendment; and
- allow 14 days for comment on an exposure draft of the proposed amendment to IFRS 16, subject to approval from the Trustees of the IFRS Foundation.
All 14 Board members agreed with these decisions.
All 14 Board members confirmed that they were satisfied the Board has complied with the applicable due-process requirements to begin the process for balloting the exposure draft.
No Board member indicated that he or she intends to dissent from the proposal in the exposure draft.
Next step
The Board plans to publish the exposure draft by 27 April 2020.
