Video narration
Why does renting an apartment suddenly make your balance sheet larger? Because future payments buy a right to use that space over time-not just monthly rent. That is the IFRS 16 flip: most leases recognise two linked items, a right-of-use asset and a lease liability. After commencement, you record depreciation and interest, not one simple rent expense. Short-term and low-value leases can be exempt. Because most leases become a right-of-use asset financed by a lease liability.