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Accounting for Changes to Lease Contracts

July 23, 2020[2020] 117 taxmann.com 860 (Article)
The challenges posed by COVID-19 have resulted in a significant increase in the number of leases being re-negotiated or modified, usually where tenants can no longer operate, or have experienced a sudden drop in revenue. As a result, the IASB has issued a limited-scope amendment to IFRS 16 Leases to reduce the administrative burden of accounting for lease adjustments which have arisen as a direct consequence of the COVID-19 pandemic.
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