Accounting for Leases: How to Calculate ROU and Lease Liability. CPA Exam FAR

[@tamersalem7542]

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[@geopolityk1160]

hi sir, maybe you can help with the following: lets say i have an increase in lease payment due to indexation - i do the remeasurement recalculating the present value of payments at given rate. the difference is then added to the value of right of use asset (that has been subject to depreciation which will be now recalculated). but why is it so? why we do not treat it as a "new" contract and therefore do not recognize right of use asset = recalculated leasing liability as we would have done if the contract was anew?