CERTYNEX IFRS ACADEMY

Novalis, lessee of an office floor, subleases part of it under a sublease classified as a finance lease. The interest rate implicit in the sublease cannot be readily determined. Which solution does IFRS 16 expressly provide for measuring Novalis's net investment?

Use the rate of a risk-free investment of the same maturity.

Do not discount and use the total sublease payments receivable.

Use the discount rate of the head lease, adjusted for the sublease's initial direct costs.

Use the average yield on Novalis's investment portfolio.