CERTYNEX IFRS ACADEMY

Sorelia signs a lease of a warehouse that the lessor is building for it. During construction, before the commencement date, Sorelia pays the lessor 50,000 for its right to use the future warehouse. How is this payment treated?

As a construction cost of an item of property, plant and equipment of Sorelia, under IAS 16.

As a lease payment made before the commencement date, included in the cost of the right-of-use asset.

As an expense when paid, since the warehouse is not yet available.

As an increase in the lease liability measured at the commencement date.