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Is Reduction of Lease Term Scope Reduction? — Cloud Customer Connect
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Is Reduction of Lease Term Scope Reduction?


Summary: When the lease term is reduced, currently Lease Accounting treats that as Scope Reduction. This was solutioned as IFRS16 examples. Now it has come to our notice that under ASC842, reduction of lease term is not treated as Scope Decrease but only as a case of Lease Liability remeasurement without any calculation of Gain/Loss.

What is others observation on this?

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