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In this video tutorial, we will learn how to calculate lease liability at its initial recognition, applicable to all standards and classifications (operating and finance) under ASC 842. The common starting point involves present valuing future lease payments at the lease commencement. This method remains consistent across different leases. While the calculation of the lease liability begins the same, the treatment of the right of use asset varies between standards, particularly when considering modifications or changes in scope. The video aims to provide a comprehensive understanding of these principles and their implications for different lease classifications.