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Lease Ind AS 116
We record lease liability by discounting all the future payments of lease rents .Is it measurement at Amortised Cost or Fair Value?
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Yes. Liability= present value of lease payments+advance payment+direct costs- tax incentives= Right to use asset. Amortised cost method is used. Any modifications are measured at fairvalue eg if lease payments are decreased or increased by lessor.
Forgot to mention. Leases have a standard and amortised cost is not the right terminology. The nomenclature used here is lease schedule
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