Which of the following changes to key estimates and judgments are specifically addressed in IFRS 16 from the standpoint of a lessor? Select the three that apply.
A. Lease classification
B. Whether a contract is or contains a lease
C. Lease term and purchase options
D. Allocation of contract consideration between lease and non-lease components
C. Lease term and purchase options D. Allocation of contract consideration between lease and non-lease components
IFRS 16, from the perspective of a lessor, specifically addresses changes in key estimates and judgments related to the lease term and how to handle purchase options, as well as the allocation of contract consideration between lease and non-lease components. However, it does not require a reclassification of leases after the initial assessment at lease commencement. Lease classification, determining whether a contract is or contains a lease, is determined at the lease start date and generally not reassessed later, unless there's a lease modification.
