At the commencement of the lease te

At the commencement of the lease term, a lessee shall recognise its rights of use
and obligations under finance leases as assets and liabilities in its statement of
financial position at amounts equal to the fair value of the leased asset or, if lower, the
present value of the minimum lease payments, determined at the inception of the lease.
Any initial direct costs of the lessee (incremental costs that are directly attributable to
negotiating and arranging a lease) are added to the amount recognised as an asset.