As we go through 2019, the accounting topic on the top of many agendas remains the conversion to the new international accounting standard on leases – IFRS 16.

While there are a variety of practical challenges coming out of this conversion process, in this article I want to concentrate on the knotty issue of lease terms and, in particular, if you are a property lessee, how long do you assume the lease term to be in various scenarios.

Determining the lease term is critical as it impacts the number of years of lease payment to be taken into account in calculating the lease liability and right of use asset.