Leases: lessees must recognise right-of-use assets and lease liabilities, measure and disclose lease impacts systematically. Ind AS 116 requires lessees at lease commencement to recognise a right-of-use asset and a lease liability; the right-of-use asset is initially measured at cost (including the lease liability, pre commencement payments net of incentives, initial direct costs and restoration obligations) and subsequently depreciated and tested for impairment, while the lease liability is initially measured at the present value of unpaid lease payments discounted using the interest rate implicit in the lease or the lessee's incremental borrowing rate and subsequently adjusted for interest, payments and remeasurements for reassessments or modifications.