RE-FX:IFRS16 revaluation

[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 did valuation every month up to current month successfully.

Here we got one requirement to change the unit price 10000 $ to 9900$ with start of consideration from 01.01.2019.

Now here we want to update the new unit price 9000$ from 01.01.2019 to current month and the total delta difference for all 20 months valses 2000$ should reduce the current month lease amount and for next month as use all should post 9000$ new unit price.

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

[former_member581851]

You have 2 options for these changes: option 1 - recalculate valuation without splitting the validity of the valuation parameters; option 2 - split the valuation parameters effective on the date when the new rate. Option 1 will re-calculate the contract valuation and make the necessary adjustments as of the start of the consideration date and make the catch-up entries in the open period; Option 2 will re-calculate the contract valuation as of the new effective date, hence no retro/catch-up adjustments but it will assume as if there's a new present value on the new effective date.