Ask the Expert: Options to extend leases under AASB 16
A business has a 5+5+5 year lease (i.e. 5 year minimum non-cancellable period with two 5 year options to extend). The option to extend is their choice. Should the lease term be 5 years, 10 years or 15 years?
Our National Head of Technical Accounting looks at the options to extend leases under AASB 16.