IFRS 16 – Leases – was issued in January 2016 and applies to accounting periods beginning on or after 1 January 2019. However, earlier application is permitted. IFRS 16 replaces IAS 17 – Leases. IFRS 16 makes substantial changes to the requirements for the recognition of rights and obligations under leasing arrangements for lessees.

Required: 
(a) Explain:

(ii) How IFRS 16 requires lessees to recognise and measure rights and obligations under leasing arrangements. (4 marks)