SOCPA's participated in providing its views on the IASB's proposal on how a tenants can account for Covid-19-related rent concessions. The amendment states that such concessions can be excluded from the scope of the standard's requirements if they are Covid-19-related.
SOCPA agrees with the IASB in principle in regards to enabling renting entities to exclude such concessions from the scope of the standard requirements, as such concessions are granted temporarily for an unforeseen reason and therefore do not constitute an amendment to any of the components of the lease. SOCPA, however, proposes to IASB that the proposed amendment be made without special reference to Covid-19, so that the principles of the standard will remain applicable in any other pandemic that may occur in another region of the world, such as earthquakes, fires, and floods affecting tenants of a particular country or region of the world.
SOCPA detailed remarks can be found by clicking here.