CERTYNEX IFRS ACADEMY

Orsalis leases a storage unit for 10 months; it has elected to account for this short-term lease under paragraph 6 of IFRS 16, as an expense of the period. Following the discontinuation of a product range, the unit is empty and the contract has become onerous. Which standard deals with this situation?

IFRS 16 alone, as every lease falls under it.

IAS 37, which applies to this short-term lease that has become onerous.

IAS 2, because the unit was used to store goods.

None: future lease payments are simply expensed as they fall due.