right for use asset – the first payment

Hi,

Thank you for the amazing lecture videos.

How do we determine the right for use asset under IFRS 16 leases?

Right of use Asset =
Lease liability (PV of future lease payments) + indirect costs + dismantling – incentive payments

Should the lease payment made on commencement be added to this too?

I’m looking to understand when, and if, I should add the lease payment made at the commencement date onto the asset value before I work out depreciation.

My ACCA notes tell me to add this and then work out the depreciation, but the video on chapter 19, part 4, does not add this on before calculating the annual straight line depreciation.

Many thanks
Emma