Hi,
Question is that:
Entity A lease 250 Acre land from Entity B for period of 5 years and recognized lease liability and ROU as per IFRS 16.
On 3rd year of lease, entity A sub lease 200 acre to entity C for period of one year.
We have recognized ROU for 5 year on 250 acre of land.
Either, we have to derecognized the ROU for entire period (200 acre for all remaining period e.g. 3 year) because we have no any right and assets?
Either, we have to derecognized the ROU for one year only and remaining 2 year relevant to 200 should recognized in books of accounts?
Sub lease
Re: Sub lease
Its means, it will be classified as operating lease?