Which one of the following statements is true regarding a lessor’s remeasurement of a lease under IFRS 16?
A lessor must remeasure an arrangement if a lessee exercises a renewal option
A lessor is not required to remeasure a lease under IFRS 16
A lessor only remeasures an arrangement classified as an operating lease
A lessor only remeasures an arrangement classified as a finance lease
Under IFRS 16, a lessor is not generally required to re-measure a lease due to a change in the lease term, unless the lease is modified or there is a change in the lease classification. However, if a lease modification results in a new lease, the lessor would treat it as a new lease for accounting purposes. Therefore, the correct statement is:
A lessor is not required to re-measure a lease under IFRS 16.
