Lease extensions and renewals

This issue will provide guidance on the accounting treatment of lease extensions and renewals. 

This issue will discuss how to account for lease extensions/renewals in the following situations in accordance to the MFRS 117 Leases:

• exercise of a renewal/extension option where extension period is included in the original lease term
• exercise of a renewal/extension option where extension period is not included in the original lease term
• negotiation of renewal/extension period not covered by a renewal/extension option in the original lease
• re-negotiation of a lease, including a renewal/extension period, that affects the terms and conditions during the original lease term.