AASB 16 initial lease liability and right-of-use asset

This is a benchmarking hypothetical, not accounting advice. Figures are as at FY2025-26. A lessee enters a 5-year lease. The lease payment is $25,000 paid at the end of each year (5 payments in arrears). The interest rate implicit in the lease cannot be readily determined, so the lessee uses its incremental borrowing rate of 7% per year as the discount rate. There are no initial direct costs, no lease incentives, no prepaid lease payments, and no restoration costs. Under AASB 16: - the initial lease liability is the present value of the lease payments, discounted at 7%: Liability = sum over t = 1..5 of 25,000 / (1.07) ^ t - the right-of-use (ROU) asset, with none of the adjustments above, equals the initial lease liability. State, in dollars (round to the nearest cent): (a) the initial lease liability, and (b) the initial right-of-use asset. Name the accounting standard that governs this measurement.