Events

According to IFRS 16 recommendations, any event impacting a lease contract is treated at the date of occurrence of the event.

Our analysis of IFRS 16 on that point led us to gather the 6 possible events under 4 categories:

Event Category
Termination before term Residual assets and debts are recycled as a result (IFRS 16.46 a)
Change in lease term (IFRS 16.40 a) Revised incremental borrowing rate (IFRS 16.41)
Change in the assessment of an option to purchase the underlying asset (IFRS 16.40 b) Revised incremental borrowing rate (IFRS 16.41)
Change in future lease payments (index variable rents) (IFRS 16.42 b) Initial incremental borrowing rate (IFRS 16.43 et 16.45 b)
Decrease in right-of-use and related rents (IFRS 16.45) Initial incremental borrowing rate (IFRS 16.43 et 16.45 b)
Modification of the scope of the lease that increases right-of-use and related rents New contract (IFRS 16.44)
  • When an event occurs in an on-going contract, user is invited to indicate the date of the event and to fill in complementary required information for updating calculations.
  • eLease16 controls consistency of dates as events are entered. Entering a new event blocks previous calculations (at the commencement date and at each previous event’s date).
  • Calculations are immediately updated and displayed until the end of the contract, year by year.