payment of penalties for terminating the lease.fixed payments (less) any lease incentives.Payment by a lessee to lessor during a lease term may comprises of Lease Receipts and Payments: The term lease Payments refer to the payments that a lessee expects to make over a lease term or the Receipts that a lessor expects over the economic life of the asset.UN-Guaranteed: is that portion of residual value of asset, the realization of which is not assured by a party related to the lessor.Guaranteed: A guarantee made to a lessor by a party unrelated to lessor that the value of an asset at the end of lease will be at least a specified amount.Residual Value: this may be Guaranteed or UN-guaranteed.Useful life is the Period over which an asset is expected to be available for use by an entity.Economic life is the total life of an asset excepted to be economically usable by one or more users.

Interest rate implicit in lease: That makes present value of lease payment and UN-guaranteed value equal to fair value and ( any ) initial direct costs of lessor.The type of lease is identified at the date of inception. Inception date of lease: The earlier of lease agreement and the date of commitment by the parties.IFRS 16 introduces a single lessee accounting model and requires a lessee to recognize assets (right-of-use) and liabilities for Allleases with a term of more than 12 months ( unless the underlying asset is of low value ).The previous version IAS-17 (Leases) was criticized because it did not required Lessees to recognize assets and liabilities arising from Operating lease.

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