Lease Impairment - how to amortize remaining ROU Balance over remaining Useful Life not Lease term
Summary:
My client has an example of a IFRS16 Property Lease that runs from 10 years from 2016 to 2026, however this Lease now needs to be impaired because access to the property will be given up on 30/6/25 but will remain liable for all the payments remaining on the lease until the end of 2026.
Need to know if the Lease Accounting module can support the scenario below
Content (please ensure you mask any confidential information):
The auditors have said to impair the lease from when they knew the useful life of the asset would change i.e. Dec-24, however when an impairment is recorded on 31/12/24 the remaining ROU balance is amortized over the remaining lease term to end of 2026, however the useful life ends in Jun-25. Is there a way to change the lease so that the amortization ends in Jun-25 but the lease payments continue to run until end of 2026.