CERTYNEX IFRS ACADEMY

Pélican leases two floors of a building. It obtains from the lessor the lease of a third floor for the remaining term, for an additional payment equal to the rental price of a comparable floor, less the marketing costs the lessor will not incur. How does Pélican account for this modification?

As a separate lease of the third floor, the original lease being unchanged.

By remeasuring the liability of the original lease at a revised rate and adjusting the existing right-of-use asset.

As a separate lease only if the additional payment is strictly equal to the market price, without any adjustment.

By remeasuring the liability at the original rate, since the added floor is in the same building.