Document ID: chunk:federal_register_of_legislation:F2024C00049:body:0:p42
Version: federal_register_of_legislation:F2024C00049
Segment Type: other
Provision Reference: 
Character Range: 105520–108410

Assets to right-of-use assets at the date of initial application, unless the lessee applies the practical expedient in paragraph C10(b).
AusC8.1 Not-for-profit entities electing to measure a class of right-of-use assets at initial recognition at fair value and applying this Standard retrospectively in accordance with paragraph C5(b) to leases that (1) at inception had significantly below-market terms and conditions principally to enable the entity to further its objectives and (2) were previously classified as operating leases applying AASB 117 shall:
(a) notwithstanding paragraph C8(b), measure each right-of-use asset in the class at fair value at the date of initial application of this Standard;
(b) measure the lease liability in accordance with paragraph C8(a); and
(c) recognise any related items in accordance with paragraph 9 of AASB 1058.

          Any income arising shall be recognised as an adjustment to the opening balance of retained earnings (or other component of equity, as appropriate) at the date of initial application of this Standard.
C9 Notwithstanding the requirements in paragraph C8, for leases previously classified as operating leases applying AASB 117, a lessee:
(a) is not required to make any adjustments on transition for leases for which the underlying asset is of low value (as described in paragraphs B3–B8) that will be accounted for applying paragraph 6. The lessee shall account for those leases applying this Standard from the date of initial application.
(b) is not required to make any adjustments on transition for leases previously accounted for as investment property using the fair value model in AASB 140 Investment Property. The lessee shall account for the right-of-use asset and the lease liability arising from those leases applying AASB 140 and this Standard from the date of initial application.
(c) shall measure the right-of-use asset at fair value at the date of initial application for leases previously accounted for as operating leases applying AASB 117 and that will be accounted for as investment property using the fair value model in AASB 140 from the date of initial application. The lessee shall account for the right-of-use asset and the lease liability arising from those leases applying AASB 140 and this Standard from the date of initial application.
C10 A lessee may use one or more of the following practical expedients when applying this Standard retrospectively in accordance with paragraph C5(b) to leases previously classified as operating leases applying AASB 117. A lessee is permitted to apply these practical expedients on a lease-by-lease basis:
(a) a lessee may apply a single discount rate to a portfolio of leases with reasonably similar characteristics (such as leases with a similar remaining lease term for a similar class of underlying asset in a similar economic environment).
(b) a lessee may