Study RoomHi all hope revision is going well. I've been working through the Advanced Case QB and keep hitting IFRS 16 lease term judgements where the AI is deliberately ambiguous on extension options or break clauses. I'm comfortable with the standard, but at this level I'm never quite sure how much depth the examiner wants. In the Nov 2022 past paper Q2 there's a store lease with a break, and the AI just says management are 'considering their options' given footfall changes. The marking grid seemed to reward picking a specific term and justifying it clearly rather than just noting uncertainty and running a sensitivity. So when the AI is like that, are you all actually landing on one lease term and running with it, even if you have to make a pretty heroic assumption? I worry that sitting on the fence could lose marks on applying judgement. Cheers
Lease term judgement when the AI is intentionally vague
Asked by Grace W. · 2h ago
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