[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-seo-24750-105":3,"detail-sidebar-cat-0-en-105":64,"doc-detail-24750-en":114},{"code":4,"msg":5,"data":6},0,"ok",{"site_id":7,"language":8,"slug":9,"title":10,"keywords":11,"description":12,"schema_data":13,"social_meta":56,"head_meta":59,"extra_data":61,"updated_unix":63},105,"en","ifrs-16-what-is-lease-term","IFRS 16 - What is Lease Term","","This document, titled 'IFRS 16: Leases - What is Lease Term,' delves into the critical definition and determination of the lease term under International Financial Reporting Standard 16. It clarifies that a lease is a contract conveying the right to use an asset for a period in exchange for consideration. The core of the document focuses on defining the 'Lease Term' by dissecting its components. It explains that the lease term encompasses the non-cancellable period, commonly illustrated with examples like a five-year flat lease with a three-month notice period, where only the non-cancellable portion constitutes the lease term. Crucially, it addresses the inclusion of periods covered by an option to extend the lease, but only if the lessee is reasonably certain to exercise that option, exemplified by a three-year bungalow lease with a one-year extension option, which would then total a four-year lease term if the extension is certain. Conversely, it explains that periods covered by an option to terminate the lease are included if the lessee is reasonably certain not to exercise it. The document further outlines factors to assess whether an option will be exercised, including the terms and conditions, leasehold improvements, cost of terminating the lease, and the importance of the underlying asset. Practical examples illustrate scenarios with variable rent after an initial period, assessing the likelihood of exercising extension options, and considering renovation costs alongside contract terms with extension provisions. The document aims to provide a comprehensive understanding of how to accurately define the lease term for financial reporting under IFRS 16, emphasizing the importance of lessee certainty in exercising or not exercising options.",{"@graph":14,"@context":55},[15,34],{"@type":16,"itemListElement":17},"BreadcrumbList",[18,23,27,31],{"item":19,"name":20,"@type":21,"position":22},"https://docshare.wps.com","Home","ListItem",1,{"item":24,"name":25,"@type":21,"position":26},"https://docshare.wps.com/document/","Document",2,{"item":28,"name":29,"@type":21,"position":30},"https://docshare.wps.com/document/research-report/","Research & Report",3,{"item":32,"name":10,"@type":21,"position":33},"https://docshare.wps.com/document/ifrs-16-what-is-lease-term/24750/",4,{"url":32,"name":10,"@type":35,"image":36,"author":41,"headline":10,"publisher":44,"fileFormat":47,"inLanguage":8,"description":12,"dateModified":48,"datePublished":49,"encodingFormat":47,"isAccessibleForFree":50,"interactionStatistic":51},"DigitalDocument",{"url":37,"@type":38,"width":39,"height":40},"https://docshare.wps.com/thumbnails/ifrs-16-what-is-lease-term/24750.png","ImageObject",300,407,{"name":42,"@type":43},"Anda","Person",{"url":19,"name":45,"@type":46},"DocShare","Organization","application/pdf","2026-09-20","2026-05-07",true,{"@type":52,"interactionType":53,"userInteractionCount":30},"InteractionCounter",{"@type":54},"ViewAction","https://schema.org",{"og:url":57,"og:type":58,"og:title":10,"og:site_name":45,"og:description":12},"https://docshare.wps.com/document/ifrs-16-what-is-lease-term/24750","article",{"robots":60,"canonical":57},"index,follow",{"doc_id":62,"site_id":7},24750,1778189721,{"code":4,"msg":65,"data":66},"success",[67,71,75,79,84,89,94,98,103,106,110],{"id":22,"doc_module":4,"doc_module_name":25,"category_name":68,"show_sort_weight":69,"slug":70},"Story & Novel",90,"story-novel",{"id":26,"doc_module":4,"doc_module_name":25,"category_name":72,"show_sort_weight":73,"slug":74},"Literature",80,"literature",{"id":33,"doc_module":4,"doc_module_name":25,"category_name":76,"show_sort_weight":77,"slug":78},"Exam",70,"exam",{"id":80,"doc_module":4,"doc_module_name":25,"category_name":81,"show_sort_weight":82,"slug":83},5,"Comic",60,"comic",{"id":85,"doc_module":4,"doc_module_name":25,"category_name":86,"show_sort_weight":87,"slug":88},6,"Technology",50,"technology",{"id":90,"doc_module":4,"doc_module_name":25,"category_name":91,"show_sort_weight":92,"slug":93},7,"Healthcare",40,"healthcare",{"id":95,"doc_module":4,"doc_module_name":25,"category_name":29,"show_sort_weight":96,"slug":97},8,30,"research-report",{"id":99,"doc_module":4,"doc_module_name":25,"category_name":100,"show_sort_weight":101,"slug":102},9,"Religion & Spirituality",20,"religion-spirituality",{"id":101,"doc_module":4,"doc_module_name":25,"category_name":104,"show_sort_weight":101,"slug":105},"World Cup","world-cup",{"id":107,"doc_module":4,"doc_module_name":25,"category_name":108,"show_sort_weight":107,"slug":109},10,"Lifestyle","lifestyle",{"id":111,"doc_module":4,"doc_module_name":25,"category_name":112,"show_sort_weight":80,"slug":113},19,"General","general",{"code":4,"msg":65,"data":115},{"doc_id":62,"user_id":116,"nickname":42,"user_avatar":117,"doc_module":4,"category_id":95,"category_name":29,"doc_title":10,"doc_description":12,"doc_content":11,"file_id":118,"file_url":119,"file_type":120,"file_size":121,"view_count":30,"is_deleted":4,"is_public":22,"is_downloadable":22,"audit_status":22,"page_count":90,"language":122,"language_code":8,"site_id":7,"html_lang":8,"table_of_contents":11,"faqs":11,"seo_title":123,"seo_description":12,"update_tm":63,"read_time":124},962075006959,"https://ap-avatar.wpscdn.com/avatar/e0002397efbe92a78e?_k=1776741047341049297","cbCaidHJovJI6R8Z","https://ap.wps.com/l/cbCaidHJovJI6R8Z","pdf",499481,"English","IFRS 16 - What is Lease Term | PDF",18]