CTHRepealedLegislation
AASB 134 - Interim Financial Reporting - July 2004
Contingent Lease PaymentsContingent Lease Payments
Start here
Get a plain-English read of Contingent Lease Payments
Turn the raw legal text into a practical explanation grounded in AASB 134 - Interim Financial Reporting - July 2004.
Contingent Lease Payments
B7 Contingent lease payments can be an example of a legal or constructive obligation that is recognised as a liability. If a lease provides for contingent payments based on the lessee achieving a certain level of annual sales, an obligation can arise in the interim periods of the annual reporting period before the required annual level of sales has been achieved, if that required level of sales is expected to be achieved and the entity, therefore, has no realistic alternative but to make the future lease payment.