DASB Interpretation 2020-12
The Dutch Accounting Standards Board (DASB, in Dutch: Raad voor de Jaarverslaggeving, RJ) provides further guidance by means of a so-called ‘Interpretations’, ‘Uitingen’ in Dutch. Further information about DASB can be found at https://www.rjnet.nl/engelse-pagina/.
Below is an explanation of DASB Interpretation 2020-12 (RJ Uiting 2020-12) which relates to the practice of reduced or deferred lease or rental terms due to the economic consequences of Covid-19.
The interpretation, issued for comment in early September 2020, has come into effect unchanged after the meeting of the DASB of 21 October 2020.
The interpretation is about guidance with a temporary character and consists of additions to the guidelines in the ‘large’ bundle of Guidelines for Annual Reporting for Medium-sized and Large-sized legal entities (RJ 292 Leasing) and to guidelines in the ‘small’ bundle for Micro and Small legal entities (B 11 Leasing).
Below, instead of ‘legal entities’ for the sake of readability, it is also referred to as ‘companies’, without changing the original content.
General elements in respect of additions to both sets of Guidelines for Annual Reporting
The application of this ‘Interpretation ‘ is optional for companies and is allowed to come into force retroactively to financial years as of January 1, 2020, so that the beginning of the Corona (Covid-19) period in the Netherlands (March 2020) falls within the financial year. For companies with a start date of the financial year that differs from January 1, the earlier start date of the financial year in which the Corona period starts is allowed, too.
The DASB does not expect the agreement between the lessor and the lessees (mutual or one-sided from the side of the lessor) on reduction or deferral of payments to change the terms of the agreement in such a way as to give rise to a reassessment of the lease classification.
The additions are to be temporary and will expire on 30 June 2021, the same time as the internationally announced amendments to IFRS 16.
NB1
Companies, which have chosen to apply the international rules of IFRS 16 Leases instead of RJ 292 Leasing, have to deal with the announced changes to IFRS 16 Leases. These changes are not discussed here; if you have any questions, please contact us.
NB2
An elaborate schedule (in Dutch) of Highlights of additions to the Guidelines is available when switching to the Dutch page.
In case of further queries, please feel free to contact Tweuus.
