IFRS 16 example: initial measurement of the right-of-use asset and lease liability  

   
                 
Below are calculations accompanying the example available on IFRScommunity.com under direct link below:  
                 
https://ifrscommunity.com/knowledge-base/ifrs-16-recognition-and-measurement-of-leases/#link-ifrs_16_example_initial_measurement_of_right-of-
use_asset_and_lease_liability
                 
On IFRScommunity.com, years are written as 20X1, 20X2 etc., but this changes to 2001, 2002 etc. whenever a spreadsheet formula needs a valid format date as a
Hence this example starts in 2001, but is NOT outdated at all :)        
                 
1/1/2001 commencement date   discount rate        
        5%        
  payments at the commencement of the lease        
  20,000 Initial direct costs          
  (5,000) Lease incentives          
  50,000 Upfront lease payment for year 2001        
                 
  future payments            
  payment date of payment discount factor discounted amount        
1 50,000 1/1/2002 0.9524 47,619.05        
2 50,000 1/1/2003 0.9070 45,351.47        
3 50,000 1/1/2004 0.8638 43,191.88        
4 50,000 1/1/2005 0.8227 41,135.12        
5 50,000 1/1/2006 0.7835 39,176.31        
6 50,000 1/1/2007 0.7462 37,310.77        
7 50,000 1/1/2008 0.7107 35,534.07        
8 50,000 1/1/2009 0.6768 33,841.97        
9 50,000 1/1/2010 0.6446 32,230.45        
                 
                 
Liability Schedule before reassessment of lease term        

        355,391.08 Lease liability at initial recognition  

                 

    year opening (1 Jan) payment (1 Jan) discount closing (31 Dec)    

    2001 355,391 - 17,770 373,161    
    2002 373,161 (50,000) 16,158 339,319    
    2003 339,319 (50,000) 14,466 303,785    
    2004 303,785 (50,000) 12,689 266,474    
    2005 266,474 (50,000) 10,824 227,298    
    2006 227,298 (50,000) 8,865 186,162    
    2007 186,162 (50,000) 6,808 142,971    
    2008 142,971 (50,000) 4,649 97,619    
    2009 97,619 (50,000) 2,381 50,000    
    2010 50,000 (50,000) - -    
                 
            515,000 Total payments
            420,391 Depreciation expense
            94,609 Discounting expense
            515,000 Total expense