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In this video tutorial, the presenter explains how to calculate lease liability at initial recognition, applicable to all standards and classifications (operating or finance) under ASC 842. The calculation involves determining the present value of future lease payments at the lease commencement date. The initial calculation process is common across standards, although the treatment of the right of use asset differs depending on the standard being followed. The video will also touch on complexities regarding lease modifications, such as decreases in scope, highlighting how calculations diverge based on specific accounting guidelines.