ASCG writes to ECON Chair for concerning Covid-19-related rent concessions

The Accounting Standards Committee of Germany (ASCG / DRSC) has today sent a letter to the Chair of the Committee on Economic and Monetary Affairs of the European Parliament (ECON), Ms Irene Tinagli.

In its letter, the ASCG’s President, Prof Dr Andreas Barckow, points out the importance and urgency of endorsing the recent amendment to IFRS 16 with regard to Covid-19-related rent concessions for the upcoming reporting season. With the IASB having reacted swiftly and having provided entities a much-welcomed accounting relief, it would be highly regrettable if its use were to fail due to purely formalistic requirements in the European endorsement process. The ASCG respectfully urges ECON and the European Parliament to assess the amendment and to issue a timely no objection note to an endorsement at their meetings in the second week of July. This would provide the necessary legal certainty for companies, auditors and regulators.