Under proposed changes to IFRS leasing standards, a lease that is less than 12 months in duration may be classified as long-term if there are substantial penalties for non-renewal.

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Under IFRS leasing standards, a lease that is less than 12 months in duration with no purchase option is considered a short-term lease, regardless of penalties for non-renewal. The classification as short-term or long-term is based on the lease term and options, not penalties.

Under Proposed Changes to IFRS Leasing Standards, a Lease That