IFRS16 lease modification
Posted: 14 Sep 2021, 19:39
Hello
The old lease starts 01/01/21 to 31/12/22 for 2 years. In Sep 21, we signed a new lease to have an extra room, the new lease starts 01/09/21 to 31/8/23 including the current space+new space, increase in considerations and further 6 months term from the original lease. Do we terminate the old lease and recognise the new lease? If we recognise as lease modification, what’s the calculation, do you have any working in details? I find the example for the increase and decrease in scope, but still don’t know how to calculate.
Thank you for your help.
The old lease starts 01/01/21 to 31/12/22 for 2 years. In Sep 21, we signed a new lease to have an extra room, the new lease starts 01/09/21 to 31/8/23 including the current space+new space, increase in considerations and further 6 months term from the original lease. Do we terminate the old lease and recognise the new lease? If we recognise as lease modification, what’s the calculation, do you have any working in details? I find the example for the increase and decrease in scope, but still don’t know how to calculate.
Thank you for your help.