Future CPI increases (or other increases dependent on an index/rate) are not included in the initial measurement of a lease liability and/or right-of-use asset.


Only fixed increases (or in-substance fixed) should be initially included.


CPI increases each year need to be handled as a re-measurement of the lease once the index becomes known (i.e. usually once per annum).


The CPI uplift functionality in AssetAccountant is intended where there are pre-agreed raises which occur in some contracts rather than estimating the CPI (which is the IFRS 16 requirement).


However, we have users that also use this for ASC 842 (the US GAAP version of IFRS 16) which does require you to estimate future CPI.


In relation to updates, you can make lease modifications based on the annual uplift when CPI is known for IFSR 16 leases which will update both the lease liability and the right-of-use asset accordingly.