Page 149 - F2 Integrated Workbook STUDENT 2019

Leases

2.3 Subsequent measurement - right-of-use asset

The right-of-use asset accounting will match the accounting of the underlying asset in
the lease.

Leased asset using cost model (e.g. PPE at historic cost)

The right-of-use asset will be measured at:

Cost less accumulated depreciation
and impairment losses.

The asset is depreciated:

 over the shorter of the lease term and the useful life of the asset if ownership
does not transfer to the lessee

 over the useful life of the asset if ownership does transfer to the lessee.

If the leased asset uses the revaluation model, the right-of-use asset
may reflect the same accounting treatment.

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