Question: In our homework, the correct answer to the question below was the first answer, A. This seems wrong to me - and goes against the

In our homework, the correct answer to the question below was the first answer, A. This seems wrong to me - and goes against the explanation given. I think the third answer should be correct, letter C, even though it isn't really a full answer. Could someone please confirm? Ive brought this to my instructors attention, but she insists that the first answer is right, and I feel like I've hit a dead-end.

Under IFRS, 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 reassess the variable lease payments. C) whenever there is a change in the cash flows resulting from a chance in the reference index or rate. D) never.

Explanation: Under IFRS, a lessee will reassess variable lease payments that depend on an index or rate 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.

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