The calculation of the right-of-use asset is not just a function of the lease liability. The measurement of the right-of-use asset is also a function of lease prepayments, lessor incentives, initial direct costs borne by the lessee, and costs to dismantle the asset or restore the site to its previous condition.
Lease prepayments increase the right-of-use asset while any lease incentives provided by the lessor to the lessee decrease the right-of-use asset.
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