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Transfer pricing
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MFRS
Lease extensions and renewals
01 Mar 2015This issue will provide guidance on the accounting treatment of lease extensions and renewals.
This issue will discuss how to account for lease extensions/renewals in the following situations in accordance to the MFRS 117 Leases:
- exercise of a renewal/extension option where extension period is included in the original lease term
- exercise of a renewal/extension option where extension period is not included in the original lease term
- negotiation of renewal/extension period not covered by a renewal/extension option in the original lease
- re-negotiation of a lease, including a renewal/extension period, that affects the terms and conditions during the original lease term.
Also appears under...