News
The Saudi Organization for Certified Public Accountants Adopts the COVID-19-Related Rent Concessions after June 30, 2021
12-Jul-2021
JEDDAH - In response to the consequences of COVID-19, the Saudi Organization for Certified Public Accountants (SOCPA), represented by the International Accounting Standards Committee, looked into the extension of the COVID-19-Related Rent Concessions that SOCPA had previously granted to lessees to enable them of implementing some of the requirements of IFRS 16, leases. The concessions give the lessees the option to handle the reductions in some lease installments due to COVID-19 by exempting them from applying the contracts’ amendment requirements stipulated in IFRS 16 in order to facilitate the application of the standard.
The IASB has extended the period of the concessions for another year that will end by June 2022.
Given that these amendments do not contradict with the work environment in the KSA, the Committee considered the amendments appropriate for application in KSA and decided to adopt the “COVID-19 Rent Related Concessions after June 30, 2021,” which amended IFRS 16, leases.
Source: www.socpa.org