CERTYNEX IFRS ACADEMY

Brévia's office lease provides for an annual rent review based on a published index, applicable on each 1 January. The index published in October 20X2 announces a rent increase from 1 January 20X3. On which date does Brévia remeasure its lease liability to reflect this increase?

As soon as the index is published in October 20X2, also estimating the reviews of the following years.

On 1 January 20X3, when the rent adjustment takes effect, based on the revised rent for the remaining term.

On 31 December 20X2, the reporting date, applying the incremental borrowing rate at that date.

On no date: indexed payments remain measured with the index at the commencement date until the end of the lease.