Right-of-use assets

Lessees recognise a right-of-use asset and a lease liability for nearly all leases, replacing the old operating/finance split.

• 01Initial liability = PV of lease payments at the incremental borrowing rate.
• 02ROU asset = liability + prepaid lease payments + initial direct costs − incentives.
• 03Exemptions: short-term (≤12 months) and low-value assets.