Real Estate
IFRS 16 Lease — Initial Recognition (Lessee)
Recording a Right-of-Use asset and lease liability when signing a long-term office or retail lease.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Right-of-Use Asset (Building) | Asset (+) | 350,000.00 | - |
| Lease Liability | Liability (+) | - | 350,000.00 |
💡 Accountant's Note
Under IFRS 16, almost all leases with a term over 12 months must be recognized on the balance sheet. The ROU asset and lease liability are both initially measured at the present value of future lease payments.
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