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Accounting Standards for Private Enterprises

Leases

Summary

In November 2020, the AcSB amended Section 3065 to provide an option for both lessees and lessors to not account for COVID-19-related rent concessions as new leases. This relief is limited to lease payments originally due on or before December 31, 2021. In response to the ongoing effects of the COVID-19 pandemic and the possibility that lessors may grant rent concessions to lessees that extend beyond December 31, 2021, the AcSB proposes to extend the optional relief for both lessees and lessors to December 31, 2022.

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 June 2021.

  • Approving project

    The AcSB issued an Exposure Draft in June 2021.

  • Engaging Communities

    The AcSB issued its Exposure Draft in June 2021. Stakeholders are encouraged to provide comments by July 30, 2021.

  • 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 December 2021.

News

December 1, 2021

News

Handbook Update – Section 3065, Leases

Section 3065, Leases was amended on December 1, 2021, to extend the optional relief by one year for both lessees and lessors on accounting for rent concessions received or granted as a result of the COVID-19 pandemic. This amendment is effective for fiscal years ending on or after December 31, 2021. Earlier application is permitted, including in financial statements not yet authorized for issue. Read more for further details on the amendment.

June 30, 2021

Document for Comment

AcSB Exposure Draft – Leases

The AcSB wants your feedback on its proposal to extend the relief period for both lessees and lessors on accounting for rent concessions received or granted as a result of the COVID-19 pandemic. The Leases Exposure Draft proposes to extend the optional relief by one-year for lease payments originally due on or before December 31, 2022. This amendment applies to private enterprises and NFPOs using Parts II and III of the CPA Canada Handbook – Accounting. Submit your comments by July 30, 2021.

Meeting & event summaries

September 30, 2021

AcSB Decision Summary – September 15-16, 2021

The AcSB deliberated stakeholders’ feedback on the Exposure Draft, “Leases.” Respondents supported the proposals in the Exposure Draft. The Board decided, subject to written ballot, to extend the scope exemption for COVID-19-related rent concessions by one year to December 31, 2022.

The AcSB recognizes the importance of this topic and is currently in the process of balloting. The Board plans to issue the final amendments on December 1, 2021. The amendments will apply to annual financial statements ending on or after December 31, 2021, with earlier application permitted, including in financial statements not yet authorized for issue.

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.