How to Calculate the Right-of-use Asset
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How to Calculate the Right-of-use Asset
When the lessee capitalizes a lease, it doesn’t just record a liability; it also records a right-of-use asset. At the commencement of the lease, the right-of-use asset is calculated as follows: Initial measurement of lease liability + lease prepayments + initial direct costs + costs to dismantle/remove the asset or restore the site - lease ...
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