IFRS 16 Leases: Lease Term and Termination

The non-cancellable period of a lease, together with both periods covered by an option to extend the lease and periods covered by an option to terminate the lease.

Upon the occurrence of a significant event or a significant change in circumstances that is within the control of the lessee and affects the lessee's certainty to exercise the option.

The existence of economic incentives that create an economic incentive for the lessee to exercise the option to extend the lease.

<p>The lease term is revised if there is a change in the non-cancellable period of a lease.</p> Signup and view all the answers

<p>All relevant facts and circumstances that create an economic incentive for the lessee not to exercise the option to terminate the lease.</p> Signup and view all the answers

<p>If the lessee is reasonably certain to exercise the option to extend the lease due to economic incentives.</p> Signup and view all the answers

<p>The lease term may be revised if there is a change in the non-cancellable period of a lease as a result of the significant event or change in circumstances.</p> Signup and view all the answers

<p>If the significant event or change in circumstances is within the control of the lessee, it may impact the lessee's certainty to exercise an option and thus, the lease term.</p> Signup and view all the answers

<p>To determine whether the lessee is reasonably certain to exercise an option to extend the lease or not to exercise an option to terminate the lease.</p> Signup and view all the answers

<p>A change in the lease term may result in a revision of the lease liability and asset, as the lease term is a critical component in their measurement.</p> Signup and view all the answers