Ability to Renew Lease with next date and Version and not as an Amendment

Summary:

Ability to renew a lease not as an amendment process

Content (please ensure you mask any confidential information):

Renewal of a lease is created as an amendment process resulting in amortizing the unrecognized revenue from the previous contract over the revised contract term.

Original Lease Term - 01-Jan-24 to 31-Dec-24 for a contract amount of AED 1,20,000. Lease renewal Option is exercised on 01-Oct-24. Unrecognized revenue from original contract is AED 30,000 on the date of option exercise. Lease is extended for another 1 year for a revised amount of AED 1,50,0000. After option exercise from 01-Oct-24 the remaining amount of AED 1,80,000 (30,000 + 1,50,000) is getting amortized over revised term of 15 months.