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This video tutorial by Sylvia from ifrsbox.com explains the basic method applied in lease accounting under IFRS 16. The example provided involves a lessee renting cars and making payments in arrears. The incremental borrowing rate is used to calculate the right of use asset and lease liability at the commencement of the lease. IFRS 16 requires the lessee to recognize the right of use asset and lease liability for all leases, with some exceptions.