RE-FX :IFRS16 revaluation of lease contract value

[former_member549575]

Dear all,

Below is our query :

we have created one contract the start of consideration is 01.01.2019 to end of consideration 31.03.2021 with unit price 10000 $ and we had been doing valuation every month up to current month successfully.

Here we got one requirement to change the unit price 10000 $ to 9900$ in month of august and the new price has to applicable from 01.01.2019.

Now here we want to update the new unit price 9900$ from 01.01.2019 and the total delta difference for all posted 20months valses 2000$ should reduce the current month lease amount and for next month as use all it should post be 9900$ with new unit price.

We are seeking your help to understand is it possible in IFRS16 contract revaluation valuation.

[andre_nakratzas]

Hi Rajesh,

If you have done RERAPP already for 10,000 you can still edit the condition type and adjust the unit price to 9,900. You will probably get a warning message on the condition tap that indicates that the condition has already been posted and you need to select if you want to update or create a new time slice. In your case since the change is retrospective as per 01.01.2019 you want to overwrite the amount to 9,900. When simulating the cash flow you'll see an adjustment posting of -100 for the previous months and the unposted cashflows for the future periods will appear as 9,900

For the valuation it will recalculate the new values based on the adjusted unit price of the condition type so there should be no problem for that.

Regards, Andre