AASB 16 Leases 29-35,Aus35.1: After commencement carry the right-of-use asset on a cost basis net of depreciation and impairment, adjusted for liability remeasurements, unless the investment property fair value model or the AASB 116 revaluation model applies, with the public sector cost or fair value election

What does 29-35,Aus35.1 require?

The right-of-use asset is carried under a cost model: cost less accumulated depreciation and impairment, adjusted for remeasurements of the lease liability. Depreciation follows AASB 116, running to the end of the underlying asset's useful life where ownership transfers or a purchase option is reasonably certain, and otherwise to whichever comes first, the end of the asset's useful life or the lease term; impairment is tested under AASB 136. Right-of-use assets qualifying as investment property must follow the AASB 140 fair value model where the lessee uses it, and right-of-use assets within a property, plant and equipment class carried under the AASB 116 revaluation model may be revalued with that class. A public sector not-for-profit entity that revalues the related class may still elect to measure the right-of-use class at cost or at fair value.