Thank you for supporting the Cloud Customer Connect Community in 2024. It's a gift to work with you!

Look back
You're almost there! Please answer a few more questions for access to the Applications content. Complete registration
Interested in joining? Complete your registration by providing Areas of Interest here. Register

Question on Termination of Finance Subleases

Experts,

 We are designing solution for Subleases for both Operating and Finance leases. I am stuck at one crucial point around Termination of Finance Sublease, for which I am not finding ample guidance from IFRS 16 or ASC 842, and hence your inputs can help me to take further steps.

Consider this example:

On the day of activation of Finance Sublease, the values are as follows:

Head Lease Right of Use value=100,000 (WDV of ROU asset on Sublease activation)

Percentage of Sublease=100%

Sublease Net Investment (NIV) (this is a calculated value which is Present Value of Lease Payments on Sublease) =120000

Gain/Loss=20000

Howdy, Stranger!

Log In

To view full details, sign in.

Register

Don't have an account? Click here to get started!