IFRS 16Chapter 6Lesson 1
Lessee at the commencement date (1): recognising the lease and measuring the lease liability
Step 1 of 8Learning objectives
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At the commencement date, the lessee recognises a right-of-use asset and a lease liability. This lesson shows how to measure the liability: select the payments not yet made that enter the measurement, choose the discount rate, then discount — illustrated by Transvia's forklift truck lease.
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Learning objectives
- Explain why, and on which date, the lessee recognises an asset and a liability for a lease.
- Sort the payments of a contract between those that enter the lease liability and those that are excluded.
- Choose the discount rate (rate implicit in the lease or incremental borrowing rate) and justify the choice.
- Calculate the present value of lease payments, paid in arrears or in advance, and record the initial entry.