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if a company leases a building from a lessor for a few years and then acts as an intermediate lessor and sub leases the same building to another company/third party ,
how is the accounting treatment done in the company accounts (the building remains with the original head lessor at the end of the lease) ?
are they shown as two separate transactions independant of one another ?
Short answer = yes.
Many permutations – I would hope they are too messy for the exam.
But, if you are interested, BDO have a good summary:
https://www.bdo.nz/en-nz/ifrs-16-creates-complexity-in-subleasing-arrangements
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