Covid-19-related rent concessions
As a result of the Coronavirus pandemic, many landlords have granted tenants rent concessions. These arrangements can include the forgiveness of a portion of or all lease payments for an agreed period (i.e. a temporary rent reduction or rent holiday).
Due to differing views on how the current requirements of FRS 102 and FRS 105 should be applied to such arrangements, the Financial Reporting Council (FRC) have proposed changes to both accounting standards which specify the accounting treatment for changes in operating lease payments directly arising from Covid-19-related rent concessions. Please see this link for more details.
Should you have any questions please contact Roger Wareham, a partner in our Bournemouth office, at roger.wareham@saffery.com
