IFRS 16 Lease Term - lessor notice period
Posted: 13 Mar 2024, 10:20
Hi all,
When assessing the lease term under IFRS 16, if both the lessee and lessor have a '3 months at any time' notice period to cancel the lease, does this mean the enforceable period is only 3 months? As after this period the enforceable rights and obligations for both parties no longer exist? (providing there is no significant penalty on either side)
Thanks
When assessing the lease term under IFRS 16, if both the lessee and lessor have a '3 months at any time' notice period to cancel the lease, does this mean the enforceable period is only 3 months? As after this period the enforceable rights and obligations for both parties no longer exist? (providing there is no significant penalty on either side)
Thanks