CERTYNEX IFRS ACADEMY

Ramberte leases retail premises: fixed annual payment, plus a variable payment equal to 3% of the store's revenue, not included in the lease liability. The variable payment due on 20X1 sales amounts to 18,000. No standard requires it to be included in the carrying amount of another asset. How should it be treated?

Add it to the lease liability and the right-of-use asset.

Spread it over the remaining lease term.

Charge it against the lease liability as a reduction of principal.

Recognise it in profit or loss for 20X1, the period of the sales that trigger it.