Fee Reductions Related to COVID-19 After the 30th of June 2021

The Saudi Organization for Chartered and Professional Accountants, represented by the Accounting Standards Committee, has studied the extension by the International Accounting Standards Board of the exemption previously granted in 2020 to tenants from applying some of the requirements of IFRS 16 "Leases" in response to the effects of COVID-19, which allows tenants the option to not apply IFRS requirments relating to contract amendment to facilitate the implementation of this IFRS.

The International Accounting Standards Board has extended this exemption for another year ending in June 2022.

Since such amendment does not contradict the environment of Saudi Arabia, the Committee considered the amendment issued to the IFRS No. 16 "Leases" on "Fee Reductions Related to COVID-19 Pandemic After 30 of June 2021" as appropriate, and decided to adopt it for application in Saudi Arabia as issued.