Question: When a lease includes variable payments based on an index the lessee includes the variable payments in the lease liability using only reasonably certain increases

When a lease includes variable payments based on an index

the lessee includes the variable payments in the lease liability using only reasonably certain increases in the index available at the commencement date of the lease.

the lessee includes the variable payments in the lease liability at the level of the index at the commencement date of the lease.

any changes in the index subsequent to the commencement date of the lease are treated as a change in estimate and the lease liability is revalued.

the lessee includes the variable payments in the lease liability using reasonably certain increases and decreases in the index

When a lease includes variable payments based on

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