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Question on Termination of Finance Subleases

in Lease Accounting

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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