IFRS 16 lease modifications: practical issues for preparers

Lease modifications continue to be a frequent source of questions under IFRS 16. When the scope or consideration of a lease changes, preparers must determine whether the change should be accounted for as a separate lease or a modification of the existing contract.

Key focus areas include index-linked payments, lease term reassessments, and partial terminations. Documenting the business rationale and maintaining clear linkage between contracts and accounting entries helps reduce audit findings.