Under IFRS 16, a lease is considered low value if all of the following apply: the asset is low value when new (guideline $5,000), the lessee can benefit from use on its own or with readily available resources, and the asset is not highly dependent on or highly integrated with other assets.

• A. The asset is of low value when new, using a $3,000 threshold.
• B. The asset is of low value when new, using a $5,000 threshold, and the lessee can benefit from use on its own or with readily available resources and the asset is not highly dependent on or highly integrated with other assets.
• C. The asset is low value if the lease term is one year or less.
• D. The asset's low value is determined solely by maintenance costs.

Answer: (B)