What is the provision for the lease under ifrs

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Question - Waterway Industries leased an office under a five-year contract, which has been accounted for as an operating lease. Faced with the downturn in the economy, the viable company decided to sub-lease the office. However, they have had no luck with this effort and the landlord will not allow the lease to be cancelled. The payments are $11000 per year and there are four years left on the lease. The company's most recent interest rate for financing from a bank is 5%. The risk-free rate on government bonds is 3%. What is the provision for the lease under IFRS?

Reference no: EM132557848

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