The IASB published an amendment to IFRS 16 in May 2020, which provides an optional practical expedient for lessees from assessing whether a rent concession related to COVID-19 is a lease modification. Regarding the amendment, ACCA Hong Kong organised a training session to discuss the accounting treatments allowed in the amendment to IFRS 16 and conditions to be satisfied when apply practical expedient. yonyou was also invited to hold a session to share how financial management solution can simplify the workloads involve in the requirement of IFRS 16.
Eunice Chu, Head of Policy, ACCA Hong Kong highlighted that the rent concession can only apply the practical expedient (PE) if it satisfies all of the following criteria:
- It is a direct consequence of the pandemic;
- It results in revised consideration that is less than the original consideration;
- It reduces lease payments originally sue on or before 30 June 2021; and
- There is no substantive change to other terms and conditions of the lease.
How to Simplify the Workflow
In fact, the IFRS16 has come into effect since January 2019, that has put burden on many accountants. Alan Liu, Principal Consultant, yonyou (Hong Kong) Co Ltd shared the IFRS16 solution of yonyou that can simplify the workloads involve in the requirement of IFRS 16.
Yonyou IFRS16 Lease Accounting Solution Overview
The solution covers three modules of lease accounting, including financial reporting, lease management and asset management. After the batch upload of leasing contract and set up of ROU fixed assets card, depreciation and value amendment, the system will process calculate automatically to support financial reporting.
Yonyou IFRS16 Lease Accounting Solution Value
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