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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA SBR Exams › IFRS 16 Leases
Other question sir, if the lease liability changes as a result of a change in the discount factor, is a corresponding adjustment made to the “right of use asset” or should this be reported in P&L.
Also sir, please say if a change in the discount factor constitutes a lease modification or not. If it does then i think it answers my first question since all modifications will result in an adjustment to the asset.
Hi,
We do not make adjustments to either the asset or liability if the discount rate changes.
Thanks
