The Myrtea brewery leases a fermentation hall. At the commencement date, it receives from the lessor a lease incentive of 12,000 and pays 3,000 of initial direct costs. The lease liability is 240,000. The lease requires the tanks to be dismantled at the end of the lease; the related provision, measured under IAS 37, is 18,000 (given). Record the initial recognition of the lease by Myrtea.
- Lease liability
- 240,000
- Lease incentive received in cash
- 12,000
- Initial direct costs paid
- 3,000
- Dismantling provision (IAS 37)
- 18,000