Lease Amortization Land and land improvement

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Hi Experts,

Hope you are doing well...!

It is my understanding that leased land and land improvements are not required to be reported under IFRS 16. Consequently, there is no depreciation applicable to land lease agreements, which means that such depreciation cannot be applied to land and land improvements for the purpose of capitalizing the Right of Use (ROU) Asset. The business incurs expenses related to the enhancement of land, such as parks, football fields, and other facilities. How should IFRS 16 reporting be approached in this context, considering the absence of depreciation, or alternatively, if depreciation is applicable, how should it be treated as an ROU?

Best Regards,

Sridhar