In the 2024 Japan Architect Examination, which of the following is the initial measurement basis of the lease liability
In the 2024 Japan Architect Examination, which of the following is the initial measurement basis of the lease liability? ( )
A. The total amount of future rent payable
B. The present value of future rent payable
C. The fair value of the leased asset
D. The book value of the leased asset
Answer: B
Explanation: The initial measurement amount of the lease liability is the present value of the future rent payable. The lessee shall first use the lessor's implicit interest rate for discounting; if the lessor's implicit interest rate cannot be determined, the lessee's incremental borrowing rate shall be used.
