CERTYNEX IFRS ACADEMY

Brelin leases an exhibition stand for 9 months and applies to this short-term lease the exemption allowing it to recognise the lease payments as an expense. Throughout this period, it subleases the stand to a young brand. How does Brelin classify the sublease?

As an operating lease, without further analysis.

As a finance lease, since the sublease covers the whole term of the head lease.

By reference to the stand itself, the underlying asset, using the usual indicators.

It does not classify it: a sublease of an exempted lease is outside the scope of IFRS 16.