Bravelle leases an office floor. At the commencement date, the initial lease liability amounts to 380,000. Before that date, Bravelle paid the lessor a first lease payment of 20,000 and received from it a lease incentive of 15,000. It incurred initial direct costs of 6,000. The lease requires it to restore the premises when it leaves; the estimate of those costs, measured under IAS 37, is 24,000 (given). Compute the cost of the right-of-use asset.
- Initial lease liability
- 380,000
- Lease payment made before the commencement date
- 20,000
- Lease incentive received from the lessor
- 15,000
- Initial direct costs
- 6,000
- Estimated restoration costs (IAS 37)
- 24,000