Insights into Ind AS 116: Lease payments

At the commencement of a lease, Ind AS 116 requires a lessee to measure the lease liability at the present value of the lease payments that are not paid at that date, which includes both fixed payments and variable lease payments. This article on ‘Lease payments’ is the second in a series of articles on the topic ‘Insights into Ind AS 116,’ and aims to help you decide which payments need to be recognised in the measurement of the liability and how changes in those payments are recognised.