AASB 16 Leases 36-38: Accrete interest on the lease liability at a constant periodic rate, reduce it for payments, remeasure it for reassessments and modifications, and expense excluded variable payments when the trigger occurs

What does 36-38 require?

After commencement the lease liability grows by interest at a constant periodic rate on the outstanding balance (the original discount rate, or the revised rate where a reassessment or modification requires one), falls by the payments made, and is remeasured for reassessments, modifications and revised in-substance fixed payments. Interest on the liability and variable payments left out of the liability are recognised in profit or loss in the period the triggering event or condition occurs, unless another Standard capitalises them into the cost of another asset.