Remeasurement of the lease liability and lease modification

• Lease concerned (underlying asset, initial term and rate)

  TextRequired

• Amendment or triggering event (nature, effective date, terms changed)

  TextRequired

• Effective date of the event or modification

  DateRequired

  20X3-12-31

• Carrying amount of the lease liability before the event

  NumberRequired

  185,941.05

• Carrying amount of the right-of-use asset before the event

  NumberRequired

  173,179.06

• Revised lease payment remaining due no. 1

  NumberRequired

  100,000

  Enter the revised lease payments remaining due at the effective date, grouped by due date (0 for an unused row). The rate is revised for a change in the lease term or in the assessment of a purchase option (paras. 40 and 41) and for a modification that is not a separate lease (para. 45); it is unchanged for a residual value guarantee or an index, except for a change in floating interest rates (paras. 42 and 43).

• Timing of payment no. 1 (number of periods from the effective date)

  NumberRequired

  1 units

• Revised lease payment remaining due no. 2

  Number

  100,000

• Timing of payment no. 2 (number of periods from the effective date)

  Number

  2 units

• Revised lease payment remaining due no. 3

  Number

  100,000

• Timing of payment no. 3 (number of periods from the effective date)

  Number

  3 units

• Revised lease payment remaining due no. 4

  Number

  100,000

• Timing of payment no. 4 (number of periods from the effective date)

  Number

  4 units

• Revised lease payment remaining due no. 5

  Number

  100,000

• Timing of payment no. 5 (number of periods from the effective date)

  Number

  5 units

• Periodic discount rate applied (revised or unchanged depending on the event)

  NumberRequired

  6 %

• Remeasured lease liability (sum of the present values below)

  NumberRequired

  421,236.38

• Decrease in scope: measure of the terminated and retained parts (floor area, number of assets)

  Table

• Row corresponding to the terminated part

  Choice

  Terminated part / Retained part

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 16 §20IFRS 16 §21IFRS 16 §B41IFRS 16 §39IFRS 16 §40IFRS 16 §41IFRS 16 §42IFRS 16 §43

• Events triggering a remeasurement

  ChecklistRequired

  • Significant event within the lessee's control changing the assessment of an option
  • Change in the non-cancellable period (option exercised or not exercised)
  • Change in the assessment of a purchase option
  • Revised rate: implicit rate for the remaining term, otherwise incremental borrowing rate at the reassessment date
  • Residual value guarantee: remeasurement when the amount expected to be payable under the guarantee changes
  • Index or rate: remeasurement when the cash flows actually change (adjustment to the payments taking effect)
  • Rate unchanged, except for a change in floating interest rates
  • Difference adjusted against the right-of-use asset; excess in profit or loss once it is reduced to zero
  • Decrease compared with the carrying amount of the right-of-use asset (after any decrease in scope); any excess recognised in profit or loss, outside the entries of this workpaper

IFRS 16 §44IFRS 16 §45IFRS 16 §46IFRS 16 §104IFRS 16 §105IFRS 16 §106

• Analysis of the modification

  Checklist

  • Separate lease: additional right of use and price increase commensurate with its adjusted stand-alone price
  • Otherwise: allocation of the consideration, new term and revised rate at the effective date
  • Decrease in scope: reduction of the right-of-use asset and gain or loss on the partial termination
  • Other modifications: right-of-use asset adjusted by the remeasurement amount
  • Modification required by interest rate benchmark reform only: remeasurement under paragraph 42

IFRS 16 §39IFRS 16 §40IFRS 16 §42IFRS 16 §45IFRS 16 §46

• Present value of revised payment no. 1

  CalculationRequired

  94,339.62

  Revised lease payment remaining due no. 1 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 1 (number of periods from the effective date)

• Present value of revised payment no. 2

  Calculation

  88,999.64

  Revised lease payment remaining due no. 2 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 2 (number of periods from the effective date)

• Present value of revised payment no. 3

  Calculation

  83,961.93

  Revised lease payment remaining due no. 3 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 3 (number of periods from the effective date)

• Present value of revised payment no. 4

  Calculation

  79,209.37

  Revised lease payment remaining due no. 4 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 4 (number of periods from the effective date)

• Present value of revised payment no. 5

  Calculation

  74,725.82

  Revised lease payment remaining due no. 5 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 5 (number of periods from the effective date)

• Decrease in the right-of-use asset (terminated part)

  Calculation

  Carrying amount of the right-of-use asset before the event ; Decrease in scope: measure of the terminated and retained parts (floor area, number of assets) ; Row corresponding to the terminated part

  The standard requires the right-of-use asset to be reduced to reflect the partial termination (para. 46) without setting the measure of proportion: the key used (floor area, number of assets) and its split between rows are a documented judgement; the same key is applied here to the lease liability.

• Decrease in the lease liability (terminated part)

  Calculation

  Carrying amount of the lease liability before the event ; Decrease in scope: measure of the terminated and retained parts (floor area, number of assets) ; Row corresponding to the terminated part

• Gain on the partial termination

  Calculation

  0

  Decrease in the lease liability (terminated part) ; − Decrease in the right-of-use asset (terminated part)

• Loss on the partial termination

  Calculation

  0

  Decrease in the lease liability (terminated part) ; − Decrease in the right-of-use asset (terminated part)

• Remeasurement adjustment (remeasured liability less carrying amount after any decrease)

  CalculationRequired

  235,295.33

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

• Increase in the lease liability adjusted against the right-of-use asset

  CalculationRequired

  235,295.33

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

• Decrease in the lease liability adjusted against the right-of-use asset

  CalculationRequired

  0

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

  Once the right-of-use asset is reduced to zero, the rest of the decrease is recognised in profit or loss (para. 39). This workpaper does not cap the decrease and has no profit or loss line for that excess: if the decrease exceeds the carrying amount of the right-of-use asset after any decrease in scope, the preparer limits the right-of-use line to that amount and recognises the excess in profit or loss outside this workpaper; the balance check does not detect this situation.

• Decrease in the scope of the lease

  Entry

  Debit Lease liability ← Decrease in the lease liability (terminated part) ; Credit Right-of-use asset ← Decrease in the right-of-use asset (terminated part) ; Credit Gain on modification ← Gain on the partial termination ; Debit Loss on modification ← Loss on the partial termination

• Upward remeasurement of the lease liability

  Entry

  Account	Debit	Credit
  Right-of-use asset	235,295.33
  Lease liability		235,295.33

• Downward remeasurement of the lease liability

  Entry

  Debit Lease liability ← Decrease in the lease liability adjusted against the right-of-use asset ; Credit Right-of-use asset ← Decrease in the lease liability adjusted against the right-of-use asset

  The IFRS 16 entry map contains a single remeasurement family, LIABILITY_REMEASUREMENT, described for an increase (debit right-of-use asset, credit lease liability). As there is no family dedicated to a decrease, this entry uses it with the sides reversed: debit lease liability, credit right-of-use asset, for the same amount. The impact declared by the family (increase in assets and liabilities) therefore does not apply here: assets and liabilities decrease.

IFRS 16 §20IFRS 16 §21IFRS 16 §B41IFRS 16 §44IFRS 16 §45IFRS 16 §46

• Lease term after the event

  JudgmentRequired

  Term extended (option now reasonably certain or exercised)

  Term unchanged (no significant event within the lessee's control) / Term extended (option now reasonably certain or exercised) / Term shortened (termination option exercised or extension abandoned)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Qualification of the event

  JudgmentRequired

  Remeasurement without a lease modification

  Remeasurement without a lease modification / Modification accounted for as a separate lease / Modification decreasing the scope / Other modification not a separate lease (price, term, extension not separate)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The remeasured liability equals the sum of the present valuesPass
• The remeasurement adjustment is determinedPass
• The qualification of the event is documentedPass
• The scope decrease entry is balancedNot evaluated
• The upward remeasurement entry is balancedPass
• The downward remeasurement entry is balancedNot evaluated

Assets

235,295.33

Liabilities

235,295.33

Profit or loss

0

OCI

0

Equity

0

• Lease concerned (underlying asset, initial term and rate)

  TextRequired

• Amendment or triggering event (nature, effective date, terms changed)

  TextRequired

• Effective date of the event or modification

  DateRequired

  20X6-01-01

• Carrying amount of the lease liability before the event

  NumberRequired

  267,301.19

• Carrying amount of the right-of-use asset before the event

  NumberRequired

  245,084.63

• Revised lease payment remaining due no. 1

  NumberRequired

  58,000

  Enter the revised lease payments remaining due at the effective date, grouped by due date (0 for an unused row). The rate is revised for a change in the lease term or in the assessment of a purchase option (paras. 40 and 41) and for a modification that is not a separate lease (para. 45); it is unchanged for a residual value guarantee or an index, except for a change in floating interest rates (paras. 42 and 43).

• Timing of payment no. 1 (number of periods from the effective date)

  NumberRequired

  1 units

• Revised lease payment remaining due no. 2

  Number

  58,000

• Timing of payment no. 2 (number of periods from the effective date)

  Number

  2 units

• Revised lease payment remaining due no. 3

  Number

  58,000

• Timing of payment no. 3 (number of periods from the effective date)

  Number

  3 units

• Revised lease payment remaining due no. 4

  Number

  0

• Timing of payment no. 4 (number of periods from the effective date)

  Number

  0 units

• Revised lease payment remaining due no. 5

  Number

  0

• Timing of payment no. 5 (number of periods from the effective date)

  Number

  0 units

• Periodic discount rate applied (revised or unchanged depending on the event)

  NumberRequired

  7 %

• Remeasured lease liability (sum of the present values below)

  NumberRequired

  152,210.34

• Decrease in scope: measure of the terminated and retained parts (floor area, number of assets)

  Table

  TERMINATED_PART · 800 | RETAINED_PART · 1,200

• Row corresponding to the terminated part

  Choice

  Terminated part

  Terminated part / Retained part

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 16 §20IFRS 16 §21IFRS 16 §B41IFRS 16 §39IFRS 16 §40IFRS 16 §41IFRS 16 §42IFRS 16 §43

• Events triggering a remeasurement

  ChecklistRequired

  • Significant event within the lessee's control changing the assessment of an option
  • Change in the non-cancellable period (option exercised or not exercised)
  • Change in the assessment of a purchase option
  • Revised rate: implicit rate for the remaining term, otherwise incremental borrowing rate at the reassessment date
  • Residual value guarantee: remeasurement when the amount expected to be payable under the guarantee changes
  • Index or rate: remeasurement when the cash flows actually change (adjustment to the payments taking effect)
  • Rate unchanged, except for a change in floating interest rates
  • Difference adjusted against the right-of-use asset; excess in profit or loss once it is reduced to zero
  • Decrease compared with the carrying amount of the right-of-use asset (after any decrease in scope); any excess recognised in profit or loss, outside the entries of this workpaper

IFRS 16 §44IFRS 16 §45IFRS 16 §46IFRS 16 §104IFRS 16 §105IFRS 16 §106

• Analysis of the modification

  Checklist

  • Separate lease: additional right of use and price increase commensurate with its adjusted stand-alone price
  • Otherwise: allocation of the consideration, new term and revised rate at the effective date
  • Decrease in scope: reduction of the right-of-use asset and gain or loss on the partial termination
  • Other modifications: right-of-use asset adjusted by the remeasurement amount
  • Modification required by interest rate benchmark reform only: remeasurement under paragraph 42

IFRS 16 §39IFRS 16 §40IFRS 16 §42IFRS 16 §45IFRS 16 §46

• Present value of revised payment no. 1

  CalculationRequired

  54,205.61

  Revised lease payment remaining due no. 1 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 1 (number of periods from the effective date)

• Present value of revised payment no. 2

  Calculation

  50,659.45

  Revised lease payment remaining due no. 2 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 2 (number of periods from the effective date)

• Present value of revised payment no. 3

  Calculation

  47,345.28

  Revised lease payment remaining due no. 3 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 3 (number of periods from the effective date)

• Present value of revised payment no. 4

  Calculation

  0

  Revised lease payment remaining due no. 4 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 4 (number of periods from the effective date)

• Present value of revised payment no. 5

  Calculation

  0

  Revised lease payment remaining due no. 5 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 5 (number of periods from the effective date)

• Decrease in the right-of-use asset (terminated part)

  Calculation

  98,033.85

  Carrying amount of the right-of-use asset before the event ; Decrease in scope: measure of the terminated and retained parts (floor area, number of assets) ; Row corresponding to the terminated part

  The standard requires the right-of-use asset to be reduced to reflect the partial termination (para. 46) without setting the measure of proportion: the key used (floor area, number of assets) and its split between rows are a documented judgement; the same key is applied here to the lease liability.

• Decrease in the lease liability (terminated part)

  Calculation

  106,920.48

  Carrying amount of the lease liability before the event ; Decrease in scope: measure of the terminated and retained parts (floor area, number of assets) ; Row corresponding to the terminated part

• Gain on the partial termination

  Calculation

  8,886.63

  Decrease in the lease liability (terminated part) ; − Decrease in the right-of-use asset (terminated part)

• Loss on the partial termination

  Calculation

  0

  Decrease in the lease liability (terminated part) ; − Decrease in the right-of-use asset (terminated part)

• Remeasurement adjustment (remeasured liability less carrying amount after any decrease)

  CalculationRequired

  -8,170.37

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

• Increase in the lease liability adjusted against the right-of-use asset

  CalculationRequired

  0

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

• Decrease in the lease liability adjusted against the right-of-use asset

  CalculationRequired

  8,170.37

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

  Once the right-of-use asset is reduced to zero, the rest of the decrease is recognised in profit or loss (para. 39). This workpaper does not cap the decrease and has no profit or loss line for that excess: if the decrease exceeds the carrying amount of the right-of-use asset after any decrease in scope, the preparer limits the right-of-use line to that amount and recognises the excess in profit or loss outside this workpaper; the balance check does not detect this situation.

• Decrease in the scope of the lease

  Entry

  Account	Debit	Credit
  Lease liability	106,920.48
  Right-of-use asset		98,033.85
  Gain on modification		8,886.63

• Upward remeasurement of the lease liability

  Entry

  Debit Right-of-use asset ← Increase in the lease liability adjusted against the right-of-use asset ; Credit Lease liability ← Increase in the lease liability adjusted against the right-of-use asset

• Downward remeasurement of the lease liability

  Entry

  Account	Debit	Credit
  Lease liability	8,170.37
  Right-of-use asset		8,170.37

  The IFRS 16 entry map contains a single remeasurement family, LIABILITY_REMEASUREMENT, described for an increase (debit right-of-use asset, credit lease liability). As there is no family dedicated to a decrease, this entry uses it with the sides reversed: debit lease liability, credit right-of-use asset, for the same amount. The impact declared by the family (increase in assets and liabilities) therefore does not apply here: assets and liabilities decrease.

IFRS 16 §20IFRS 16 §21IFRS 16 §B41IFRS 16 §44IFRS 16 §45IFRS 16 §46

• Lease term after the event

  JudgmentRequired

  Term unchanged (no significant event within the lessee's control)

  Term unchanged (no significant event within the lessee's control) / Term extended (option now reasonably certain or exercised) / Term shortened (termination option exercised or extension abandoned)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Qualification of the event

  JudgmentRequired

  Modification decreasing the scope

  Remeasurement without a lease modification / Modification accounted for as a separate lease / Modification decreasing the scope / Other modification not a separate lease (price, term, extension not separate)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The remeasured liability equals the sum of the present valuesPass
• The remeasurement adjustment is determinedPass
• The qualification of the event is documentedPass
• The scope decrease entry is balancedPass
• The upward remeasurement entry is balancedNot evaluated
• The downward remeasurement entry is balancedPass

Assets

-106,204.22

Liabilities

-115,090.85

Profit or loss

8,886.63

OCI

0

Equity

8,886.63

• Lease concerned (underlying asset, initial term and rate)

  TextRequired

• Amendment or triggering event (nature, effective date, terms changed)

  TextRequired

• Effective date of the event or modification

  DateRequired

  20X5-12-31

• Carrying amount of the lease liability before the event

  NumberRequired

  86,538.46

• Carrying amount of the right-of-use asset before the event

  NumberRequired

  78,632.07

• Revised lease payment remaining due no. 1

  NumberRequired

  80,000

  Enter the revised lease payments remaining due at the effective date, grouped by due date (0 for an unused row). The rate is revised for a change in the lease term or in the assessment of a purchase option (paras. 40 and 41) and for a modification that is not a separate lease (para. 45); it is unchanged for a residual value guarantee or an index, except for a change in floating interest rates (paras. 42 and 43).

• Timing of payment no. 1 (number of periods from the effective date)

  NumberRequired

  1 units

• Revised lease payment remaining due no. 2

  Number

  80,000

• Timing of payment no. 2 (number of periods from the effective date)

  Number

  2 units

• Revised lease payment remaining due no. 3

  Number

  80,000

• Timing of payment no. 3 (number of periods from the effective date)

  Number

  3 units

• Revised lease payment remaining due no. 4

  Number

  0

• Timing of payment no. 4 (number of periods from the effective date)

  Number

  0 units

• Revised lease payment remaining due no. 5

  Number

  0

• Timing of payment no. 5 (number of periods from the effective date)

  Number

  0 units

• Periodic discount rate applied (revised or unchanged depending on the event)

  NumberRequired

  6 %

• Remeasured lease liability (sum of the present values below)

  NumberRequired

  213,840.96

• Decrease in scope: measure of the terminated and retained parts (floor area, number of assets)

  Table

• Row corresponding to the terminated part

  Choice

  Terminated part / Retained part

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 16 §20IFRS 16 §21IFRS 16 §B41IFRS 16 §39IFRS 16 §40IFRS 16 §41IFRS 16 §42IFRS 16 §43

• Events triggering a remeasurement

  ChecklistRequired

  • Significant event within the lessee's control changing the assessment of an option
  • Change in the non-cancellable period (option exercised or not exercised)
  • Change in the assessment of a purchase option
  • Revised rate: implicit rate for the remaining term, otherwise incremental borrowing rate at the reassessment date
  • Residual value guarantee: remeasurement when the amount expected to be payable under the guarantee changes
  • Index or rate: remeasurement when the cash flows actually change (adjustment to the payments taking effect)
  • Rate unchanged, except for a change in floating interest rates
  • Difference adjusted against the right-of-use asset; excess in profit or loss once it is reduced to zero
  • Decrease compared with the carrying amount of the right-of-use asset (after any decrease in scope); any excess recognised in profit or loss, outside the entries of this workpaper

IFRS 16 §44IFRS 16 §45IFRS 16 §46IFRS 16 §104IFRS 16 §105IFRS 16 §106

• Analysis of the modification

  Checklist

  • Separate lease: additional right of use and price increase commensurate with its adjusted stand-alone price
  • Otherwise: allocation of the consideration, new term and revised rate at the effective date
  • Decrease in scope: reduction of the right-of-use asset and gain or loss on the partial termination
  • Other modifications: right-of-use asset adjusted by the remeasurement amount
  • Modification required by interest rate benchmark reform only: remeasurement under paragraph 42

IFRS 16 §39IFRS 16 §40IFRS 16 §42IFRS 16 §45IFRS 16 §46

• Present value of revised payment no. 1

  CalculationRequired

  75,471.7

  Revised lease payment remaining due no. 1 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 1 (number of periods from the effective date)

• Present value of revised payment no. 2

  Calculation

  71,199.72

  Revised lease payment remaining due no. 2 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 2 (number of periods from the effective date)

• Present value of revised payment no. 3

  Calculation

  67,169.54

  Revised lease payment remaining due no. 3 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 3 (number of periods from the effective date)

• Present value of revised payment no. 4

  Calculation

  0

  Revised lease payment remaining due no. 4 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 4 (number of periods from the effective date)

• Present value of revised payment no. 5

  Calculation

  0

  Revised lease payment remaining due no. 5 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 5 (number of periods from the effective date)

• Decrease in the right-of-use asset (terminated part)

  Calculation

  Carrying amount of the right-of-use asset before the event ; Decrease in scope: measure of the terminated and retained parts (floor area, number of assets) ; Row corresponding to the terminated part

  The standard requires the right-of-use asset to be reduced to reflect the partial termination (para. 46) without setting the measure of proportion: the key used (floor area, number of assets) and its split between rows are a documented judgement; the same key is applied here to the lease liability.

• Decrease in the lease liability (terminated part)

  Calculation

  Carrying amount of the lease liability before the event ; Decrease in scope: measure of the terminated and retained parts (floor area, number of assets) ; Row corresponding to the terminated part

• Gain on the partial termination

  Calculation

  0

  Decrease in the lease liability (terminated part) ; − Decrease in the right-of-use asset (terminated part)

• Loss on the partial termination

  Calculation

  0

  Decrease in the lease liability (terminated part) ; − Decrease in the right-of-use asset (terminated part)

• Remeasurement adjustment (remeasured liability less carrying amount after any decrease)

  CalculationRequired

  127,302.5

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

• Increase in the lease liability adjusted against the right-of-use asset

  CalculationRequired

  127,302.5

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

• Decrease in the lease liability adjusted against the right-of-use asset

  CalculationRequired

  0

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

  Once the right-of-use asset is reduced to zero, the rest of the decrease is recognised in profit or loss (para. 39). This workpaper does not cap the decrease and has no profit or loss line for that excess: if the decrease exceeds the carrying amount of the right-of-use asset after any decrease in scope, the preparer limits the right-of-use line to that amount and recognises the excess in profit or loss outside this workpaper; the balance check does not detect this situation.

• Decrease in the scope of the lease

  Entry

  Debit Lease liability ← Decrease in the lease liability (terminated part) ; Credit Right-of-use asset ← Decrease in the right-of-use asset (terminated part) ; Credit Gain on modification ← Gain on the partial termination ; Debit Loss on modification ← Loss on the partial termination

• Upward remeasurement of the lease liability

  Entry

  Account	Debit	Credit
  Right-of-use asset	127,302.5
  Lease liability		127,302.5

• Downward remeasurement of the lease liability

  Entry

  Debit Lease liability ← Decrease in the lease liability adjusted against the right-of-use asset ; Credit Right-of-use asset ← Decrease in the lease liability adjusted against the right-of-use asset

  The IFRS 16 entry map contains a single remeasurement family, LIABILITY_REMEASUREMENT, described for an increase (debit right-of-use asset, credit lease liability). As there is no family dedicated to a decrease, this entry uses it with the sides reversed: debit lease liability, credit right-of-use asset, for the same amount. The impact declared by the family (increase in assets and liabilities) therefore does not apply here: assets and liabilities decrease.

IFRS 16 §20IFRS 16 §21IFRS 16 §B41IFRS 16 §44IFRS 16 §45IFRS 16 §46

• Lease term after the event

  JudgmentRequired

  Term extended (option now reasonably certain or exercised)

  Term unchanged (no significant event within the lessee's control) / Term extended (option now reasonably certain or exercised) / Term shortened (termination option exercised or extension abandoned)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Qualification of the event

  JudgmentRequired

  Other modification not a separate lease (price, term, extension not separate)

  Remeasurement without a lease modification / Modification accounted for as a separate lease / Modification decreasing the scope / Other modification not a separate lease (price, term, extension not separate)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The remeasured liability equals the sum of the present valuesPass
• The remeasurement adjustment is determinedPass
• The qualification of the event is documentedPass
• The scope decrease entry is balancedNot evaluated
• The upward remeasurement entry is balancedPass
• The downward remeasurement entry is balancedNot evaluated

Assets

127,302.5

Liabilities

127,302.5

Profit or loss

0

OCI

0

Equity

0

• Lease concerned (underlying asset, initial term and rate)

  TextRequired

• Amendment or triggering event (nature, effective date, terms changed)

  TextRequired

• Effective date of the event or modification

  DateRequired

  20X6-01-01

• Carrying amount of the lease liability before the event

  NumberRequired

  343,129.25

• Carrying amount of the right-of-use asset before the event

  NumberRequired

  335,842.32

• Revised lease payment remaining due no. 1

  NumberRequired

  120,000

  Enter the revised lease payments remaining due at the effective date, grouped by due date (0 for an unused row). The rate is revised for a change in the lease term or in the assessment of a purchase option (paras. 40 and 41) and for a modification that is not a separate lease (para. 45); it is unchanged for a residual value guarantee or an index, except for a change in floating interest rates (paras. 42 and 43).

• Timing of payment no. 1 (number of periods from the effective date)

  NumberRequired

  0 units

• Revised lease payment remaining due no. 2

  Number

  120,000

• Timing of payment no. 2 (number of periods from the effective date)

  Number

  1 units

• Revised lease payment remaining due no. 3

  Number

  120,000

• Timing of payment no. 3 (number of periods from the effective date)

  Number

  2 units

• Revised lease payment remaining due no. 4

  Number

  0

• Timing of payment no. 4 (number of periods from the effective date)

  Number

  0 units

• Revised lease payment remaining due no. 5

  Number

  0

• Timing of payment no. 5 (number of periods from the effective date)

  Number

  0 units

• Periodic discount rate applied (revised or unchanged depending on the event)

  NumberRequired

  5 %

• Remeasured lease liability (sum of the present values below)

  NumberRequired

  343,129.25

• Decrease in scope: measure of the terminated and retained parts (floor area, number of assets)

  Table

• Row corresponding to the terminated part

  Choice

  Terminated part / Retained part

• Evidence obtained and referenced (category, document reference)

  EvidenceRequired

IFRS 16 §20IFRS 16 §21IFRS 16 §B41IFRS 16 §39IFRS 16 §40IFRS 16 §41IFRS 16 §42IFRS 16 §43

• Events triggering a remeasurement

  ChecklistRequired

  • Significant event within the lessee's control changing the assessment of an option
  • Change in the non-cancellable period (option exercised or not exercised)
  • Change in the assessment of a purchase option
  • Revised rate: implicit rate for the remaining term, otherwise incremental borrowing rate at the reassessment date
  • Residual value guarantee: remeasurement when the amount expected to be payable under the guarantee changes
  • Index or rate: remeasurement when the cash flows actually change (adjustment to the payments taking effect)
  • Rate unchanged, except for a change in floating interest rates
  • Difference adjusted against the right-of-use asset; excess in profit or loss once it is reduced to zero
  • Decrease compared with the carrying amount of the right-of-use asset (after any decrease in scope); any excess recognised in profit or loss, outside the entries of this workpaper

IFRS 16 §44IFRS 16 §45IFRS 16 §46IFRS 16 §104IFRS 16 §105IFRS 16 §106

• Analysis of the modification

  Checklist

  • Separate lease: additional right of use and price increase commensurate with its adjusted stand-alone price
  • Otherwise: allocation of the consideration, new term and revised rate at the effective date
  • Decrease in scope: reduction of the right-of-use asset and gain or loss on the partial termination
  • Other modifications: right-of-use asset adjusted by the remeasurement amount
  • Modification required by interest rate benchmark reform only: remeasurement under paragraph 42

IFRS 16 §39IFRS 16 §40IFRS 16 §42IFRS 16 §45IFRS 16 §46

• Present value of revised payment no. 1

  CalculationRequired

  120,000

  Revised lease payment remaining due no. 1 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 1 (number of periods from the effective date)

• Present value of revised payment no. 2

  Calculation

  114,285.71

  Revised lease payment remaining due no. 2 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 2 (number of periods from the effective date)

• Present value of revised payment no. 3

  Calculation

  108,843.54

  Revised lease payment remaining due no. 3 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 3 (number of periods from the effective date)

• Present value of revised payment no. 4

  Calculation

  0

  Revised lease payment remaining due no. 4 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 4 (number of periods from the effective date)

• Present value of revised payment no. 5

  Calculation

  0

  Revised lease payment remaining due no. 5 ; Periodic discount rate applied (revised or unchanged depending on the event) ; Timing of payment no. 5 (number of periods from the effective date)

• Decrease in the right-of-use asset (terminated part)

  Calculation

  Carrying amount of the right-of-use asset before the event ; Decrease in scope: measure of the terminated and retained parts (floor area, number of assets) ; Row corresponding to the terminated part

  The standard requires the right-of-use asset to be reduced to reflect the partial termination (para. 46) without setting the measure of proportion: the key used (floor area, number of assets) and its split between rows are a documented judgement; the same key is applied here to the lease liability.

• Decrease in the lease liability (terminated part)

  Calculation

  Carrying amount of the lease liability before the event ; Decrease in scope: measure of the terminated and retained parts (floor area, number of assets) ; Row corresponding to the terminated part

• Gain on the partial termination

  Calculation

  0

  Decrease in the lease liability (terminated part) ; − Decrease in the right-of-use asset (terminated part)

• Loss on the partial termination

  Calculation

  0

  Decrease in the lease liability (terminated part) ; − Decrease in the right-of-use asset (terminated part)

• Remeasurement adjustment (remeasured liability less carrying amount after any decrease)

  CalculationRequired

  0

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

• Increase in the lease liability adjusted against the right-of-use asset

  CalculationRequired

  0

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

• Decrease in the lease liability adjusted against the right-of-use asset

  CalculationRequired

  0

  Remeasured lease liability (sum of the present values below) ; − Carrying amount of the lease liability before the event ; Decrease in the lease liability (terminated part)

  Once the right-of-use asset is reduced to zero, the rest of the decrease is recognised in profit or loss (para. 39). This workpaper does not cap the decrease and has no profit or loss line for that excess: if the decrease exceeds the carrying amount of the right-of-use asset after any decrease in scope, the preparer limits the right-of-use line to that amount and recognises the excess in profit or loss outside this workpaper; the balance check does not detect this situation.

• Decrease in the scope of the lease

  Entry

  Debit Lease liability ← Decrease in the lease liability (terminated part) ; Credit Right-of-use asset ← Decrease in the right-of-use asset (terminated part) ; Credit Gain on modification ← Gain on the partial termination ; Debit Loss on modification ← Loss on the partial termination

• Upward remeasurement of the lease liability

  Entry

  Debit Right-of-use asset ← Increase in the lease liability adjusted against the right-of-use asset ; Credit Lease liability ← Increase in the lease liability adjusted against the right-of-use asset

• Downward remeasurement of the lease liability

  Entry

  Debit Lease liability ← Decrease in the lease liability adjusted against the right-of-use asset ; Credit Right-of-use asset ← Decrease in the lease liability adjusted against the right-of-use asset

  The IFRS 16 entry map contains a single remeasurement family, LIABILITY_REMEASUREMENT, described for an increase (debit right-of-use asset, credit lease liability). As there is no family dedicated to a decrease, this entry uses it with the sides reversed: debit lease liability, credit right-of-use asset, for the same amount. The impact declared by the family (increase in assets and liabilities) therefore does not apply here: assets and liabilities decrease.

IFRS 16 §20IFRS 16 §21IFRS 16 §B41IFRS 16 §44IFRS 16 §45IFRS 16 §46

• Lease term after the event

  JudgmentRequired

  Term unchanged (no significant event within the lessee's control)

  Term unchanged (no significant event within the lessee's control) / Term extended (option now reasonably certain or exercised) / Term shortened (termination option exercised or extension abandoned)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Qualification of the event

  JudgmentRequired

  Modification accounted for as a separate lease

  Remeasurement without a lease modification / Modification accounted for as a separate lease / Modification decreasing the scope / Other modification not a separate lease (price, term, extension not separate)

• Rationale: facts relied on, analysis, alternative rejected

  TextRequired

• Impact by caption, derived from the entries above (the Notes line refers to the disclosures)

  TableRequired

• Paragraphs cited in this workpaper (verification status shown from the register)

  References

• The remeasured liability equals the sum of the present valuesPass
• The remeasurement adjustment is determinedPass
• The qualification of the event is documentedPass
• The scope decrease entry is balancedNot evaluated
• The upward remeasurement entry is balancedNot evaluated
• The downward remeasurement entry is balancedNot evaluated

Assets

0

Liabilities

0

Profit or loss

0

OCI

0

Equity

0