IFRS 16 paragraph 47 provides that a lessee shall present the right-of-use assets as a separate line item in the statement of financial position.

However, the lessee may include the right-of-use assets only in the appropriate line item within which the corresponding underlying assets would be presented if they were owned.

If this is the case, disclosure of the line item within which the right-of-use assets are included in the statement of financial position shall be made.

For example is when the right of use asset related to property may be included within the line item of property, plant and equipment.

Next Lesson – IFRS 16 Disclosure Requirements for Lessees