IFRS 16 Measurement of a Lease

IFRS 16 Measurement of a Lease

Saket Modi

20 years: Chartered accountant & educator

In IFRS 16 Leases Part I, Saket Modi explained what a lease was, service components that may accompany a lease, optional exemptions and leaseback transactions. In part II of this series, Modi will explain measurements of a right-of-use asset, lessor accounting, and how to measure lease liability.

In IFRS 16 Leases Part I, Saket Modi explained what a lease was, service components that may accompany a lease, optional exemptions and leaseback transactions. In part II of this series, Modi will explain measurements of a right-of-use asset, lessor accounting, and how to measure lease liability.

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IFRS 16 Measurement of a Lease

6 mins 24 secs

Overview

In this video, Saket outlines the measurement process for a right-of-use asset and the lease liability. The lessee recognises the right-of-use asset and lease liability at the commencement date. Additionally, a lessor classifies a lease as either a finance lease or an operating lease.

Key learning objectives:

  • How is the lease liability measured?

  • How is the right-of-use asset measured?

  • What could the subsequent measurement of the right-of-use asset be at?

  • What is a financial lease, and an operating lease?

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Summary
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Expert
Saket Modi

Saket Modi

Saket is a financial trainer and consultant based out of London. He specialises in advanced accounting, financial reporting and financial analysis, particularly with regards to International Financial Reporting Standards (IFRS), International Public Sector Accounting Standards (IPSAS) and Financial instruments.

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