[Verse 1] A contract grants control, right to use an asset For a period of time, exchange consideration Identify the lease first, then recognition follows Right-of-use asset born, liability shadows [Chorus] R-O-U, asset on the books today Lease liability, present valueway Discount rate decides the calculation fate IFRS sixteen, don't underestimate R-O-U, asset depreciation Lease liability, interest allocation [Verse 2] Incremental borrowing rate when implicit's hidden Secured lending rate adjusted for the lease specifics Initial measurement captures payments yet to come Variable payments excluded, only fixed ones sum [Chorus] R-O-U, asset on the books today Lease liability, present value way Discount rate decides the calculation fate IFRS sixteen, don't underestimate R-O-U, asset depreciation Lease liability, interest allocation [Verse 3] Twelve months or less qualifies for short-term treatment Low-value items get the same procurement Five thousand threshold, underlying asset new Practical expedient, expense as payments due [Bridge] Modifications change the scope or consideration Separate lease or remeasurement situation If it's a separate lease, account accordingly Otherwise remeasure, adjust the liability [Chorus] R-O-U, asset on the books today Lease liability, present value way Discount rate decides the calculation fate IFRS sixteen, don't underestimate R-O-U, asset depreciation Lease liability, interest allocation [Outro] Initial costs and prepayments, add them to the base Incentives received subtract from asset's face Restoration costs estimated at commencement date Balance sheet transformation, lease accounting's fate
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