The Saudi Organization for Chartered and Professional Accountants provided its view on the draft of the International Accounting Standards Board amendment to the International Financial Reporting Standard No. 16 related to extending the exemption period granted to tenants from treating rent reductions due to the Covid-19 pandemic as amendments to the contract.
In its response, SOCPA stressed the importance of responding to such pandemic circumstances in a way that reduces the burden of preparing the financial report while preserving the quality of the report and its comparability.
SOCPA considered that it is appropriate for the standards amendments to be based on principles rather than responding to a specific temporary circumstance, so that the response of the standard is appropriate for any circumstance similar to that of Covid-19 pandemic, whether it is a general or region-specific pandemic.
For the detailed SOCPA response,
click here.