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Insights into MFRS 16: Lease payments

At the commencement of a lease, MFRS 16 requires a lessee to measure the lease liability at the present value of the lease payments that are not paid at that date.

This liability includes both fixed payments (including in-substance fixed payments) and variable lease payments that depend on an index or rate, and represents the starting point for the measurement of the related right-of-use asset.