For Companies That Prepare Their Financial Statements in Accordance with IFRS

For companies that prepare their financial statements in accordance with IFRS, a lessee will reassess variable lease payments that depend on an index or a rate:

A) not just when the lessee remeasures the right-of-use asset and lease liability for other reasons, but also whenever there is a change in the cash flows resulting from a change in the reference index or rate.
B) only when the lessee remeasures the right-of-use asset and lease liability for other reasons.
C) using the discount rate in effect at the beginning of the lease.
D) only when the terms of the lease are modified by the lessee and lessor.