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Instructions and help about Interim Change Reporting Procedures Post Lease Up

hi this is Silvia of IFRS box.com and in this video I'm going to show you the basic method applied in the least accounting under the newest least standard IFRS 16 so let's take a look to the very simple example now let's say that Alexi rents out some car and she will pay for payments of 110 thousand currency units in arrears so at the end of each year and if the lessee would go to the bank and ask for the loan to buy the same car the bank will charge 4 percent per annum so in other words this is our incremental borrowing rate now let's see what I for a 16 says initially at the commencement of the lease the lessee should recognize the right of use asset and the least liability for all laces well there are some exceptions but let's focus on this basic stuff here here the lessee does not classify the lease anymore the right of use asset is calculated as the amount of the lease liability plus lease payments before or on the commencement date Leslie's incentives plus leases initial direct c

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