News & Events

Rent Concession

2020-09-21 10:48
Rent concessions include rent reduction, rent rebate, rent free period, deferral of payment and any other benefits in kind to the lessee; most of these rent concessions will be considered as lease modification, which would lead to a reassessment of the lease liability by using revised discount rate on that lease.
HKICPA published two sets of illustrative examples on rent concessions in Jan and Jun 2020 to illustrate how to determine whether a lease modification is a must. In view of the significance of economic impact on Covid-19, a new amendment on HKFRS 16 has been issued in June 2020 to provide special relief on rent concessions as a result of Covid-19.