AASB 16 Leases 104-106: Apply the interest rate benchmark reform expedient: remeasure the liability under paragraph 42 for modifications that are a direct consequence of the reform on an economically equivalent basis, and apply the general modification rules to any other concurrent changes

What does 104-106 require?

Where a lease modification changes the basis for determining future payments directly because of interest rate benchmark reform (as AASB 9 defines it), and the new basis is economically equivalent to the old, the lessee accounts for it by remeasuring the liability with the revised payments under paragraph 42 rather than as a modification. The expedient covers only such modifications; other modifications made at the same time are accounted for under the normal modification requirements together with the benchmark change.