IFRS 16 requires the recognition of a “right of use” (ROU) asset on the balance sheet for ALL leases undertaken by a business. This ROU asset is recorded under the …
Under IFRS 16, the main items that will appear on the balance sheet are a “right of use asset” and a lease liability. However, it is also important to understand how to calculate the related interest payments for the lease at each payment interval as well as the depreciation amounts.