Hello,
I am reviewing the educational material published by the IASB in April 2020 as a measure against the negotiations that would come a few weeks or months later due to Covid-19 and that could qualify as lease modifications. This material did not add to or change the requirements of IFRS 16 until then. It is important to note that the amendment to IFRS 16 that added the practical expedient to optionally avoid lease modification accounting in certain cases was not published until May or June of that year.
The reason for my publication is because in the educational material it is indicated that a change in the payments is only a change in the consideration and, consequently, a modification of the contract, when it results in a overall change of the consideration, and therefore, a concession of rent of the type "not making the payments of the next three months with a proportional increase of the following payments" is not a change of the consideration. all good so far. My problem is when I see the requirements of the IFRS 16 amendment to apply the practical expedient and one of them says: "the change in lease payments results in revised consideration for the lease that is substantially the same as, or less than, the consideration for the lease immediately preceding the change...". For me, this requirement is the same as the overall change condition in the consideration, so it does not make sense as a requirement to avoid modification accounting when this already indicates that the change would not be a modification (as I explained before), and more still if we see that the requirements of the practical expedient are copulative. Are they the same?
Thanks!