A Lessee Will Reassess Variable Lease Payments That Depend on an Index

Multiple Choice

A lessee will reassess variable lease payments that depend on an index or a rate:

A) Only when the lessee remeasures the right-of-use asset and lease liability for other reasons.
B) Only when the lessor also reassesses the variable lease payments.
C) Whenever there is a change in the cash flows resulting from a change in the reference index or rate.
D) Never.