In the context of lease accounting, what type of costs are included in measuring the right of use asset?

In lease accounting, the measurement of the right-of-use (ROU) asset includes certain financial components that reflect the economic reality of the lease agreement. The correct choice highlights that the right-of-use asset comprises the present value of future lease payments along with any additional costs necessary to bring the asset to the condition for its intended use.

The inclusion of the present value of future lease payments is crucial because it captures the total commitment of the lessee to make payments over the life of the lease, reflecting the value of the right to use the asset over that period. Additionally, any further costs directly attributable to the acquisition of the lease, such as initial direct costs, are also factored in, as they are necessary to prepare the asset for its intended use.

This approach adheres to the principles outlined in accounting standards, such as IFRS 16, which aim to provide a clear picture of the lessee's obligations and the value of their rights under the lease.

Other choices focus on single elements that do not represent the comprehensive picture required for the ROU asset's measurement. Deposits, maintenance costs, or legal fees would not encapsulate the full economic cost associated with the lease. Therefore, these elements alone lack the necessary scope to define the