How to record COVID-19 rent concession
Accounting for rent concessions directly in the income statement under the IFRS 16 practical expedient.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Lease Liability | Liability | 3,000.00 | - |
| Other Income (Rent Concession) | Income | - | 3,000.00 |
💡 Accountant's Note
Under the COVID-19 practical expedient, lessees can account for eligible rent concessions as if they were not lease modifications, recognizing the benefit in profit or loss.
Practitioner & Systems Framework
💻 ERP Architecture
Record as a credit to other income and a debit to the lease liability balance.
⚠️ Audit Flags
Application of expedient to concessions beyond June 2022 or for non-COVID reasons.
📄 Required Documentation
Amended lease contract or formal letter from the lessor granting the concession.
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General Accountant Supervisor & IFRS Specialist
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