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
A lessor is not required to remeasure a lease under IFRS 16, unless there has been a lease modification or a change in the lease terms. According to IFRS 16, the lessor's accounting for leases primarily focuses on the classification of leases as either sales-type leases or direct financing leases, not on the need for remeasurement upon exercise of a renewal option by the lessee. Therefore, the correct statement is:
B) A lessor is not required to remeasure a lease under IFRS 16.
