Limitations Comparability Issues: The Limited Relief Period  The limited relief period (i

Limitations

Comparability Issues: The Limited Relief Period 

The limited relief period (i.e. only rent concessions in the calendar year 2020 are subject to the practical expedient) creates interpretive and comparability issues as we work through the Exposure Draft (ED) Proposal. This is because only rent concessions in the year 2020 are subject to the practical expedient. While it is certain that this will cause comparability issues with US GAAP, which does not place any restrictions on the length of its relief period, there will also be comparability issues both within and between businesses that apply IFRS and have different calendar years. For instance, a company that has its year-end on March 31 and has concessions that extend beyond the calendar year 2020 may not be able to apply the same accounting to the first three quarters (those in calendar year 2020) of their fiscal 2021 financials as they do to the last quarter of their fiscal 2021 financials. This is because the concessions will extend beyond the calendar year 2020. 

REQUIRED:

(a) Suggestions or recommendations to overcome the limitations based on the discussion above (500 words)