Hi Everyone,
Company is entering into sale and leaseback transaction where the lease payments are dependent on CPI.
There was a committee's decision in case of sale and leaseback transaction with variable lease payments depending on revenue of lessee that entity needs to estimated the expected future lease payments and then calculate the lease liability.
https://home.kpmg/xx/en/home/insights/2 ... frs16.html
Do we have to estimate the future lease payments if the variable lease payments depend on Index?
Thanks,
Anuradha
Sale and lease back with variable payments
Re: Sale and lease back with variable payments
I would do nothing, and book the change (recalculate everything) only when it occurs.
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