Do changes in payment terms due to the impact of Covid-19 require amendments to the lease agreement?

We have observed that changes in lease payment terms have occurred or are anticipated due to the consequences of the COVID-19 pandemic, leading to potential modifications to the lease agreement and accounting recognition.

Lease contracts should be considered for modification when:

There is a change in the scope of the lease contract (1) or the lessee's benefits from the lease (2), which was not in the initial terms and conditions of the lease contract. Examples of changes in the scope of the lease contract include changes in the subleasing rights under the contract. (2) Changes in lessee's benefits from the lease, such as changes in payment terms.

Lease contracts should be considered for modification when:

There is a change in the scope of the lease contract or the lessee's benefits from the lease that was originally included in the terms and conditions of the lease contract • Changes do not alter the scope of the lease contract or the lessee's benefits from the lease.

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