CERTYNEX IFRS ACADEMY

Nautéa leases a cold-storage warehouse for 10 months. For the class of warehouse assets, it has not elected the short-term lease exemption and therefore recognises a right-of-use asset and a lease liability. It subleases the warehouse to a fish wholesaler for the 10 months. How should Nautéa approach the classification of the sublease?

Operating lease by default, since the head lease lasts less than 12 months.

Classification by reference to the warehouse, whose economic life far exceeds 10 months.

No classification: a sublease of less than 12 months is outside the scope of IFRS 16.

Classification by reference to the right-of-use asset arising from the head lease, the operating lease exception not applying as no exemption was applied.