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In this video tutorial, Sylvia from ifrsbox.com explains the basic method used in lease accounting under IFRS 16. Using a simple example of car rentals, she illustrates how the lessee recognizes right of use assets and lease liabilities at the lease commencement. The lessee should calculate the right of use asset as the amount of lease liability and lease payments, excluding lease incentives. This approach eliminates lease classification for the lessee, as outlined in IFRS 16.