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This video tutorial by Sylvia from IFRSbox.com explains the basic method applied in lease accounting under IFRS 16. Using a simple example of car rentals, the video demonstrates the calculation of right-of-use asset and lease liability at the commencement of the lease. According to IFRS 16, the lessee should recognize these assets and liabilities for all leases initially. There is no classification of the lease anymore, and the right-of-use asset is calculated based on the lease liability and payments.