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Accounting Standards for Private Enterprises

Leases

Summary

As a result of the COVID-19 pandemic, many enterprises are receiving rent concessions. This includes lease payment deferrals or payment forgiveness, or they are renegotiating lease terms.

Section 3065, Leases provides guidance on accounting for changes in the provisions of an existing lease and requires that any such changes be accounted for as a new lease (i.e. a lease modification). This could be onerous for private enterprises with many leases if all rent concessions needed to be accounted for as new leases.

The AcSB decided to amend Section 3065 to provide relief for both lessees and lessors on accounting for rent concessions as a result of the COVID-19 pandemic.

Staff Contact(s)

Katharine Christopoulos, CPA, CA Director, Accounting Standards Board

Phone number  +1 416 204 3270
Email address  [email protected]

Project Status

  • Information gathering

    Completed prior to July 2020

  • Approving project

    The AcSB approved the project in July 2020

  • Engaging Communities

    The AcSB issued its Exposure Draft in September 2020

    Stakeholders are encouraged to respond by October 2, 2020

  • Deliberating feedback

    The AcSB is deliberating feedback on its Exposure Draft

  • Final pronouncement

    The final amendments will be issued in the CPA Canada Handbook – Accounting in November 2020.

Disclaimer

This project summary has been prepared for information purposes only. Decisions reported are tentative and reflect only the current status of discussions on this project, which may change after further Board deliberations. Decisions to publish Handbook material are final only after a formal voting process.