Snoopy wrote
"I have been puzzled why the 'Right of Use Assets' did not automatically equal the 'Lease Liabilities' "
A good question which, sadly, forced me to read up on IFRS16. I too assumed the ROU asset would equal the liability at inception...until I read a PWC guide on it. The liability is calculated using the net present value of future cash flows which is pretty standard stuff. But here comes the interesting part, although IFRS16 can never be described as interesting of itself,...
The ROU asset is the ROU liability plus and minus a bunch of adjustments. Quote from PWC : "the right-of-use asset is initially recognised at the commencement day and measured at cost, consisting of the amount of the initial measurement of the lease liability, plus any lease payments made to the lessor at or before the commencement date
less any lease incentives received, the initial estimate of restoration costs and any initial direct costs incurred by the lessee." (bold emphasis added by me). Source = p10 of
https://www.pwc.com/pg/en/publicatio...pth-ifrs16.pdf