IFRS 16 - Lease Modification
Posted: 19 Jul 2021, 11:20
Is there a defined order of priority in computing adjustments due to lease modifications? Especially if there are more than 1 changes in the scope of lease to take effect at the same time.
I have this example as a reference:
"Let’s assume that, after initial recognition set out in the previous example, a lease modification is made on 1 January 20X6 as follows:
the scope is increased by additional 1,500 sq m
the lease term is shortened from 10 to 8 years
annual payments are increased to $150,000
The revised discount rate at the lease modification date is 7%."
Here's the link: https://ifrscommunity.com/knowledge-bas ... fications/
I have this example as a reference:
"Let’s assume that, after initial recognition set out in the previous example, a lease modification is made on 1 January 20X6 as follows:
the scope is increased by additional 1,500 sq m
the lease term is shortened from 10 to 8 years
annual payments are increased to $150,000
The revised discount rate at the lease modification date is 7%."
Here's the link: https://ifrscommunity.com/knowledge-bas ... fications/