IFRS 16 Leases Explained:Lessee Accounting with Worked Example (Lease Liability & ROU Asset).

Struggling with IFRS 16? This lecture breaks down lease accounting in the books of the lessee — step by step, with a fully worked example in Naira. Using a practical case (X Plc: 5 annual rentals of ₦100,000, a ₦40,000 residual value guarantee, ₦5,000 initial direct costs, and an 8% implicit rate), you'll see exactly how the numbers are built and where every figure comes from. 📘 WHAT YOU'LL LEARN ✅ How to measure the lease liability at commencement (present value of lease payments) ✅ How to calculate the right-of-use asset, including initial direct costs ✅ How to treat a residual value guarantee under IFRS 16 ✅ Subsequent measurement: the lease liability amortisation schedule ✅ Depreciation of the right-of-use asset — and what determines the depreciation period ✅ Journal entries at commencement and each year end ✅ Financial statement extracts, including current vs non-current lease liability 🎯 WHO THIS IS FOR ICAN, ACCA and CIMA students preparing for financial reporting exams Accountants and finance professionals applying IFRS 16 in practice Anyone who wants to finally understand lease accounting with confidence 💡 TIP: Pause the video and attempt each calculation yourself before watching the solution. That's how it sticks. 👍 If this helped, like the video, subscribe for more IFRS lectures, and share it with your study group. 💬 Questions? Drop them in the comments — I read and respond. #IFRS16 #LeaseAccounting #ICAN #ACCA #FinancialReporting #IFRS #AccountingTutorial #RightOfUseAsset #Nigeria