In this article we'll show you how you can record a Rent deferral that was agreed to after your Agreement commenced. To see any Rent deferrals accurately reflected in your IFRS reports, you'll need to ensure you're powering your calculations using the New Engine.
Rent Deferrals agreed and known from Commencement
If your Rent deferral was agreed and known from the Commencement of your agreement, you can click Action > Repair Data from the Agreement Timeline, and jump to the Rent & Payments page of the Agreement Wizard. You can skip ahead to steps (8) and (9) below to find out what you'll need to do to add in your rent deferral.
As you don't need to add in a Variation Event, reference to the "Variation Date" should be replaced with the Commencement Date.
For more guidance, please contact our support team at support@nomosone.com
Adding in a Rent deferral to your Agreement
- On the relevant Agreement, click Action > Create / Edit Events
- This will take you to the Events page of the Agreement Wizard where you can scroll to the Variation section and click Edit
- Using the calendar tool or text field, enter a Variation Event for the date you agreed to to the terms of the Rent Deferral. Remember to click Add
- Click Done at the top or bottom of the page to return to the Agreement Timeline
- You'll now see a new icon on the Agreement Timeline representing the Variation Event. At Step 1, click Start Event
While you can add Events on a date that is within a locked period, you cannot complete these Events on the Agreement Event Timeline. If your Variation Event is within a locked period, you'll need to ask a user with the Administrator permission in your Organisation to edit the Lock Date before you can complete the Event. Check out this article for more information.
- At the Data update step, click Yes there are variations to the agreement, then click + Add variation
- This will open the Agreement Wizard from the date of the Variation. Navigate to the Rent & Payments page of the Agreement Wizard
- To stop the regular Rent payments being recorded for the period you've deferred your Rent, you'll need to add in a Rent Holiday/Discount
The Effective Date should be the date you agreed there would be a deferral in Rent (the same as the Variation date). This will be the date you'll see any remeasurement in your IFRS reports. The Effective Date must be on, or before the Start Date of the Rent Holiday/Discount for you to be able to click Add
Use the Start Date and End Date fields to record the period that your Rent has been deferred for. Remember that the End Date is inclusive of this holiday/discount
You can either record a % or $ amount for this discount. This amount will be deducted on each Rent Payment Date, per Payment Period. If you're recording a $ value, be sure to calculate the correct proportion your Rent is to be reduced by
- To record your payment of the Rent at a later date, you'll need to add in a One-off Payment. You might need to add in more than one of these depending on how you are paying the deferred Rent.
The Effective Date of your One-off Payment should be the date you agreed there would be a deferral in Rent (the same as the Variation event date). This will be the date you'll see any remeasurement in your IFRS reports. The Effective Date must be on, or before the Date of any One-off Payment for you to be able to click Add.
The Date should be the date you agreed you would pay the deferred Rent.
- Once you've recorded your Rent Holiday/Discount and any One-off Payments, click Done at the top or bottom of the Agreement Wizard to return to the Variation Event on the Agreement Timeline. Click Next to confirm the changes you've made.
Please note that adding an IFRS 16 Component Payment such as a Holiday/Discount won't produce a Display Note summarising the change made in the Variation Event. You may like to add your own Custom Event Note to record details of the Rent Holiday/Discount that was added through the Variation Event.
- Upload any Documentation that supports this change to your Agreement, or click No Documentation Required, and click Next
- Confirm the Data Change Date of the Variation event. This should be the same as the Event Date. If these dates don't match, click Edit beside the Nomos One Data Change Date and use the calendar tool to update this. Once these match, click Next to finish completing the Variation Event and record your Rent deferral.
You'll then get a Certification to say the Event has been completed, and the Variation Event icon on the Timeline will turn green!
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