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hi welcome to cpdbox channel this is silvia and in this video im going to discuss about various components of the rentals or lease payments that you might incur as a lessee and how to account for them todays question is from our lady from malta and also i combined it with another question coming from russia because similar questions are popping up since the standard ifrs 16 was issued so here we go we are a large retail chain and we rent the premises for our stores from various property owners mostly in the high-class shopping malls in some cases the rental payments are calculated as a fixed fee per month plus a percentage of our sales generated in the store during that year this is because the shopping malls promote our store and help us to bring in more customers also the monthly fixed fee is adjusted every two years for the inflation rate we are aware that under ifrs 16 we need to determine the right of use asset and the lease liability as the present value of all unpaid lease pa