Modify design in the Lease Renewal

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Import your document. You can drag and drop your Lease Renewal directly to our file upload pane, browse it from your device or cloud, or opt for an alterntive way to add it (through a direct form link on an external resource or from an email attachment).
Edit your content. You can modify your Lease Renewal utilizing DocHub’s top toolbar just the way you need it - insert new text, images, and symbols. Update your form by erasing or striking out improper details while underlining or highlighting the most significant data with your preferred colors.
Create fillable forms. Click on the Manage Fields button in the top left corner. Place fillable fields for text, initials, checkmarks, and dropdowns so other people can fill out their data. Make these fields required or optional, and assign them to particular people.
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How to Modify design in the Lease Renewal

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hi and welcome to accounting academy im Fitz and this is my dog FIFO we love to help people learn more about accounting so join us on our adventures as we dive into accounting topics on todays adventure we are going to be helping our friend Paul he recently modified some of his leases and has asked for help he owns a chain of veterinary clinics called Pet Vet get back here FIFO its just the vet Hey Paul how are things going. Hey guys things are going great but Im totally stumped on how I should account for a few changes to my leases. Well lets run through them see what we can do. Okay great the first clinic is doing a ton of business and we are expanding. I had a thousand square foot office and now Im adding another thousand square feet. However, the new square footage is being added to the contract at the current market rate which is higher. Okay I see so the cost of the expansion is more than the original square footage you had. Yeah thats correc

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What is the difference between lease modification and lease reassessment?

ing to the IFRS 16, A re-assessment of the lease liability takes place if the cash flows change based on the original terms and conditions of the lease. Changes that were not part of the original terms and conditions of the lease would be considered as lease modifications.

What triggers a lease modification?

A few examples of changes to a lease that could cause a standard lease modification include a change in future payments, a lease renewal, or a change in the incremental borrowing rate.

What is modification of lease terms?

Lease modification: A change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease (for example, adding or terminating the right to use one or more underlying assets, or extending or shortening the contractual lease term).

How do you account for lease modifications?

A lessors accounting for a lease modification depends on the type of modification made to the lease. Depending on the changes made to the lease contract, a lease modification can result in either a separate new contract (i.e., accounted for separate from the original contract) or a new modified contract.

What is lease remeasurement?

A change in the lease term or the assessment of whether the lessee will exercise an option to purchase the underlying asset and the discount rate for the lease already reflects that the lessee has an option to extend or terminate the lease or to purchase the underlying asset.

Is a lease modification the same as a lease amendment?

A modification of lease, also called a lease amendment or lease modification, is an agreement that formally changes the original terms and conditions of a lease. It allows the parties to agree to changes without having to sign an entirely new lease.

What qualifies as a lease modification?

A lease modification includes adding or terminating the right to use one or more underlying assets, or extending or shortening the contractual lease term.

Is lease renewal a lease modification?

The agreement to extend the lease is a modification because it was not contemplated in the original terms of the lease. Since the modification does not add the right to use one or more underlying assets, it does not meet the criteria in IFRS 16.44(a) to be accounted for as a separate lease.

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