7.1 Rent free periods/ periods with different lease payments

A contract where rent is unpaid, or paid in a lower amount, in a period after ROU asset are available for use by a lessee, a rent free period or a period with low rent is registered as follows (Please remember that you shall ONLY register periods after January 1st 2019):

In this example, the contract started from January 1st 2019. It has a rent-free period until June 30th 2019 and then continue with lease payment 170,000 each quarter until December 31st 2025, which is the end date of the contract. This can also be done by using the field for the start date for depreciation.

In this calculation, interest will be calculated and added to the lease liability in the rent-free period. Please note that the lease liability will increase in the rent-free period.

Please note that the rent free period is only relevant after the ROU asset is available. If a contract is entered for a future period and the ROU asset is not available, the lease liability should not be recognized before the underlying asset is available. See IFRS 16.22.