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IFRS 16 Lease entry with Incremental Lease rent

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edited Mar 4, 2021 5:11PM in Assets 4 comments

Summary

IFRS 16 Lease entry with Incremental Lease rent

Content

Hi Team,

Business has a lease agreement where the lease rent are increasing by 3% every period. Lease asset has to be created for this as per the requirement of IFRS 16.

We do not see any option to enter such percentage to increase the lease rent by certain %. However there is an option to enter variable lease rent but in that case Interest rate (discounting percentage) is not available, so it is not discounting the same.

Please clarify -

1. Is there a way to enter a % so that lease rent increases periodically. And how discounting will be done on that.

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