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Sir, just say the transaction constitutes a sale in accordance with IFRS 15 and the seller/lessee now recognizes the right of use asset. Should the asset subsequently be depreciated using the same rules in a normal leasing transaction,i.e:
If the lease is a finance one, depreciate over the economic life of the asset
If the lease is an operating one, depreciate using the earlier period between lease term and the asset’s economic life?
Yes, that all sounds correct.