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
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