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?