Page 145 - F2 Integrated Workbook STUDENT 2019

Leases

To calculate the lease liability and right-of-use asset, the lessee must establish the
length of the lease term.

The lease term comprises:

 Non-cancellable periods

 Periods covered by an option to extend the lease if reasonably certain to be
exercised

 Periods covered by an option to terminate the lease if reasonably certain not to
be exercised

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