Hi,

We need to give a solution to one of our clients (Using IFS Cloud), who want to account for the lease modification under below changes to the lease contract

Lease Contract Sample

Version 1 –

Lease Period: 11/1/2021 to 5/31/2027

Incremental borrowing rate as at 01 April 2018: 16.44%

Monthly Effective Interest Rate: 1.28%

Lease Payments: Beginning of period

              11/1/2021 to 11/1/2024        160,000

              11/1/2024 to 5/1/2027            184,000           

Version 2- Modification

Lease Period: 5/1/2024 to 4/1/2034

Incremental borrowing rate as of 01 April 2018: 10.15% (from 5/1/2024)

Monthly Effective Interest Rate: 0.81%

Lease Payments: Beginning of period

              11/1/2021 to 4/1/2024        160,000

              5/1/2024 to 4/1/2026           291,667

              5/1/2026 to 4/1/2028           326,667

              5/1/2028 to 4/1/2030           365,167

              5/1/2030 to 4/1/2032           407,517

              5/1/2032 to 4/1/2033           454,102

              5/1/2033 to 4/1/2034           512,435

So pls advise how to handle this modification in IFS Cloud.