Part 1: New Lease Accounting – using IFRS 16 Leases Effect Analysis . Which payments are to be included in the measurement of lease assets and lease liabilities? Also, discuss the pros and cons of...

Part 1: New Lease Accounting – using IFRS 16 Leases Effect Analysis.

1. Which payments are to be included in the measurement of lease assets and lease liabilities? Also, discuss the pros and cons of excluding the following payments from the measurement. - Variable lease payments linked to future use or sales - Optional payments relating to lease-extension option when a lessee is not reasonably certain to exercise the option.