The Spanish Accounting and Audit Institute (ICAC) publishes a ruling on the accounting treatment to be applied to reductions and waivers of rental payments agreed as a consequence of the COVID-19 crisis in the case of operating leases.
There was uncertainty as to the accounting treatment that should be applied to these discounts and waivers, a matter on which the ICAC had not ruled. Thus, the question could be raised as to whether the criterion in the ICAC rulings that had analyzed the treatment of grace periods and graduated rent payments could be extrapolated. In these rulings, the ICAC had chosen to record the rent reduction on an accrual basis. Doubts arose because these situations were provided by contract and substantially different from those arising in 2020.