ACCA FR · Chapter 6 · Question 1 of 9
Under IFRS 16, what does a lessee normally recognise at the commencement date of a lease?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) A right-of-use asset and a lease liability
Explanation
IFRS 16 uses a single lessee accounting model. At commencement the lessee recognises a lease liability, measured at the present value of the lease payments not yet paid, and a right-of-use asset. The only exceptions are the optional exemptions for short-term leases and leases of low-value assets.
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