IFRS 16- Lease Modification

[EstherO]

Hi, please I need assistance on how to treat a change to a client's lease agreement.

Before now, the client had 2 lease contracts for one estate, each contract with different tenor and rental payment. During the year, there was a recertification of land causing the issuance of a new lease contract(one) that overrides the initial 2 contracts.

My ask is should this change be treated as a modification or an entirely new lease?

[Marek Muc]

Depending on the specific circumstances, lease modifications can either be accounted for as a new lease or an adjustment to the pre-existing lease. See https://ifrscommunity.com/knowledge-bas ... fications/