CERTYNEX IFRS ACADEMY

Valcrose leases 40 tablets for its sales staff. The lease is of low-value assets and Valcrose has elected the corresponding exemption. What does it recognise at the commencement date?

Nothing in the statement of financial position; lease payments will be expensed on a straight-line or another systematic basis.

A right-of-use asset and a lease liability, the exemption relating only to disclosures.

A right-of-use asset only, with no lease liability.

An expense equal to all the lease payments of the contract.