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Leases

Lessee accounting

2.1 Measurement

At inception

of lease
recognise

Right-of-use
Lease liability
asset

Recognise at present value of Recognise at cost, which
payments not yet made: equals:

 Fixed payments  Initial value of lease liability

 Variable payments (valued  Payments made at or before
as at inception) commencement

 Amounts expected to be paid  Initial direct costs
under residual value
guarantees  Estimated costs of asset
removal or dismantling as
 Options to purchase that are per lease conditions
expected to be exercised

 Termination penalties if lease
term reflects expectation they
will be paid.

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