Question: if a lease is capitalized how do you report it under IAS 16 1. its an asset and a debt on the lessees balance sheet

if a lease is capitalized how do you report it under IAS 16

1. its an asset and a debt on the lessees balance sheet

2.it shows as a liability on the lessors f/s

3. the lease become capital asset, allowing firm to borrow more

4. the leases present value shows liability on lessees balance sheet not an asset

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