IAS 36 What is a lease impairment? IAS 36 What is a lease impairment
Simple, it is a right-of-use asset and will frequently be included in a cash generating unit to be tested for impairment.
At initial recognition, the right-of-use-asset equals the recognised lease liability, plus any lease payments made at or before the commencement date, less any lease incentives received, plus any initial direct costs incurred by the lessee and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset and restoring the site on which the leased asset is located.
The most significant part of the right-of-use asset will often be the lease liability, … Read more