Question to the Department for Business, Energy and Industrial Strategy:

To ask Her Majesty's Government what assessment they have made of the conclusion by the UK Endorsement Board in Paragraph 27 of its endorsement assessment for IFRS 16 that the test required by Paragraph 1(c) of Regulation 7 of The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685 had been met and that hence the true and fair view test required by Paragraph 1(a) of that Regulation had been met.

The International Accounting Standards and European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2019 No. 685, regulation 7, paragraph 1(a) sets out the “true and fair” adoption criterion.

The endorsement assessment referred to in these questions was included in an Endorsement Criteria Assessment provided by the UK Endorsement Board Secretariat for consideration as a part of the Government’s formal adoption decision.

The Government’s assessment applied the three adoption criteria set out in regulation 7.

The IASB amendment Covid-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16) extends the date a lessee is permitted to apply a practical expedient to rent concessions that meet certain conditions, from on or before 30 June 2021, to on or before 30 June 2022. This was an extension to a Covid-19-related exemption provided to help shield companies from the impact of the Covid-19 lockdown.

The Government understands that the UK Endorsement Board Secretariat’s draft Endorsement Criteria Assessment was published for comment and no comments were received on that paragraph.