In May 2020, the Federation of Accounting Professions (TFAC) issued COVID-19-related Rent Concessions - Phase 2, which amends TFRS 16. This standard was published in the Royal Gazette on 13 May 2021 and revised to be in line with International Financial Reporting Standards (“IFRS”) Bound Volume 2021.
Keywords: Mazars, Thailand, Accounting, COVID-19, Rent concessions, TFRS 16, TFAC, IFRS
Updated: 10 June 2021
The reason for issuing this amendment is because the economic challenges presented by the COVID-19 pandemic have persisted longer than anticipated. As a result, lessors and lessees are negotiating rent concessions that extend beyond 30 June 2021. Therefore, TFAC has extended this practical expedient by 12 months, from 30 June 2021 to 30 June 2022.
Covid-19-related Rent Concessions – Phase 2, which amends TFRS 16, is effective for annual reporting periods beginning on or after 1 April 2021 with earlier application permitted, including in financial statements which were not approved for issuing as of 31 March 2021.
For more details, see also our article, “TFAC issues relief measures for entities affected by the COVID-19 pandemic”, published on 9 March 2021.
Reference: TFAC website