CERTYNEX IFRS ACADEMY

On what basis does a lessee assess whether the underlying asset of a lease is of low value?

On the current value of the asset, taking into account its age and wear at the date of the contract.

On the value of the asset when new, regardless of its actual age.

On the materiality of the lease to the lessee's financial statements.

On the undiscounted total of the lease payments due over the whole lease term.