BC145 The IASB decided to require a cost measurement basis for the right-of-use asset and lease liability, with cost measured by reference to the present value of the lease payments. The IASB concluded that this approach will provide useful information to users of financial statements. This is because it is consistent with the approach used to measure other similar assets and liabilities and thus is expected to result in more comparable information than other approaches. The IASB also concluded that using a cost measurement basis will be less costly for preparers than other approaches.
BC146 The IASB considered whether to refer to other Standards rather than specify in IFRS 16 the initial and subsequent measurement of the right-of-use asset and lease liability. The IASB did not adopt an approach that would refer to other Standards because:
(a) the approach would have been inconsistent with the IASB’s decision not to apply a components approach to lease accounting
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