CERTYNEX IFRS ACADEMY

Hexaline leases industrial presses under finance leases for six years. At the end of the second year, its annual review leads it to lower the estimate of the unguaranteed residual value of one of the presses, which was included in the gross investment. No other term of the contract changes. What treatment must Hexaline apply?

No adjustment before the end of the lease, since the residual value is only realised when the press is returned.

Reclassify the lease as an operating lease, since the lessor now bears more risks on the asset.

Revise the income allocation over the lease term and immediately recognise the reduction relating to amounts already accrued.

Change only the finance income of future years, the amounts already recognised remaining unchanged whatever the decrease observed.