15.10 Termination and relocation to new premises owned by the same landlord

As in 13.8, at the end of 2022, the business has grown and needs new premises. A new lease starts on January 1st 2023 for five years with the same landlord for other premises (New rental property). The rent is at a standalone price of 50,000 pr. quarter. The previous contract is terminated from January 1st 2023 without special compensation, and the company then moves to the new premises. The discount rate is now estimated at 5.5%, resulting in the following data:

Open this original lease in SharePoint and click Log change. Termination of the original lease can then be registered as follows in Share Control Share Point add-in by using Log other changes.

The calculation will look as illustrated below:

The gain on this modification is “13,158” in the Gain or loss column.

When we create a new folder to register the new lease in Share Control, the calculation result of the new lease is as illustrated below:

In this case, the original lease liability and the right of use asset are terminated, a gain is recognized on January 1st 2023, and the new lease is recognized on the same date. In another scenario, where the new lease is agreed on at an earlier date, the measurement and recognition of gain would also have occurred at that earlier date. The remaining lease obligation and right of use, however, would continue to be recognized until January 1st 2023. The new premises would only be recognized from January 1st 2023.