Australia Lease renewals


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Just wanted to get people's thoughts around lease renewals. If a completely new lease contract is negotiated over an existing underlying asset that you are currently leasing.

The new lease contract is wholly separate to the current lease contract, the only commonality is that they are both over the same underlying asset.

Would the new lease be considered a new lease under the accounting standard, or an modification of the existing lease?
 
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This is a new contract. A lease modification is a change in the scope of a lease, or the consideration for a lease, that was not part of the original terms and conditions of the lease. More information on lease modifications can be found here: Lease modifications
 
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Thanks, your interpretation is the same as mine, and one of my colleagues.
 

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