IFRS 16- Leases

Good Afternoon, Entity A uses full IFRS and IFRS 16 is applicable for the very first time. Entity B uses IFRS for SME and IAS 17 is applicable. Entity A is the parent and is a lessee since it rents space from Entity B. Entity A treated this lease as an operating lease under the old standard i.e. IAS 17 in it's separate financial statements. Entity B is the subsidiary and owns space which it rents to Entity A and other external tenants. Entity B treats this as an operating lease in it's separate financial statements. In preparing the consolidated financial statements of the A group, how would this arrangement be treated? Thank you.